Anora Group (ANORA) Q4 2023 earnings summary

Executive summary

• Q4 net sales fell 4.2% to €212.4m; comparable EBITDA rose 35.2% to €28.2m as improved gross margin, price increases and cost control lifted profitability.

• FY net sales grew 3.5% to €727.6m, while comparable EBITDA fell 8.9% to €69.4m; €65.4m of impairments contributed to a €30.2m operating loss.

• FY result for the period was -€39.0m and basic EPS -€0.58, versus net income of €18.1m and EPS of €0.26 in 2022.

Financial highlights

• Q4 gross profit was €88.0m and gross margin 41.4%, versus 40.2%; Q4 EBITDA was €23.1m, up 22.3% YoY.

• FY EBITDA was €68.7m versus €67.9m, while comparable EBITDA was €69.4m versus €76.2m.

• Q4 operating result was -€50.5m and result for the period -€43.3m; FY finance expenses were €47.4m versus €17.5m in 2022.

• FY operating cash flow reached €135.3m versus -€0.4m, supported by lower working capital and inventory, receivables sales and the Larsen divestment.

• FY other operating income included an €11.6m gain on the Larsen divestment.

Outlook and guidance

• 2024 comparable EBITDA guidance is €75–85m, versus €69.4m in 2023.

• Key-market volumes are expected to be slightly lower in 2024 than in 2023 amid challenging economic conditions.

• Priorities include further price adjustments, lower net working capital, improved inventory turnover, cost reductions and investment in profitable growth.