Ambra (AMB) Q1 24/25 earnings summary

Executive summary

• Net sales revenue for Q1 2024/2025 declined by 2.7% year-over-year to PLN 192.9 million, with organic sales down 2.1%.

• EBIT dropped 17.0% to PLN 14.6 million, and net profit attributable to majority shareholders fell 48.9% to PLN 5.0 million, impacted by exchange rate differences and a higher effective tax rate.

• Sales volume decreased by 0.4% to 20.5 million bottles (0.75L equivalent), mainly due to weak consumer sentiment and negative exchange rate effects.

• Non-alcoholic wine sales grew dynamically across all markets, especially in Romania (+344%).

• Cash flow from operating activities improved by PLN 8.3 million, resulting in a 4.9% reduction in net debt to PLN 52.7 million.

Financial highlights

• Net sales margin improved by up to 2.6% (+1.7 million PLN), driven by lower purchase prices and a stronger zloty.

• EBIT: PLN 14.6 million, down 17.0% year-over-year.

• EBITDA: PLN 22.2 million, down from PLN 24.9 million year-over-year.

• Free cash flow dropped by 72.4% to PLN -6.6 million, mainly due to higher investment outlays.

• Operating costs increased by 9.7%, mainly due to wage pressure and inflation.

Outlook and guidance

• Management expects gradual improvement in consumer sentiment and purchasing, with future results influenced by changes in wine and premium alcohol consumption.

• Falling inflation and improved household situations may positively impact demand.

• Focus remains on returning to medium-term sales profitability and reducing operating cost dynamics.

• Continued investment in production efficiency and quality is planned.

• No financial forecasts were published for the 2024/2025 financial year.