Acomo (ACOMO) H1 2024 earnings summary

Executive summary

• H1 2024 sales were €668.2 million, flat year-over-year, with EBITDA at €41.2 million, down 9% from H1 2023.

• Net profit declined 19% to €17.8 million, mainly due to volatile cocoa markets impacting Organic Ingredients and Edible Seeds.

• Spices & Nuts achieved record results with double-digit growth in sales and EBITDA; Tea and Edible Seeds faced mixed conditions.

• The group maintained a healthy gross margin, reflecting portfolio robustness and value-added services.

• Interim dividend set at €0.40 per share, unchanged from 2023.

Financial highlights

• Gross profit rose 2.4% to €88.8 million, while EBITDA fell 9% to €41.2 million and operating income dropped 10% to €32.7 million.

• Net profit was €17.8 million, down 19% year-over-year; earnings per share at €0.61.

• Financial expenses increased due to currency mix; operating cash flow was negative at €9.7 million.

• Working capital increased moderately after prior reductions, mainly due to inventory management.

• Interim dividend payments totaled €22.2 million in H1 2024.

Outlook and guidance

• Cocoa market volatility makes full-year results unpredictable, though some improvement may occur.

• Management expects to recover most cocoa-related losses in 2024, but no guarantees due to ongoing volatility.

• Spices & Nuts and Food Solutions segments expected to continue upward trends, supported by consumer demand and acquisitions.

• Production capacity expansion in Food Solutions planned, with new facility to start operations in Q1 2025.

• Continued focus on growth through acquisitions and investments in core segments.