Apranga (APG1L) Q2 2024 earnings summary

Executive summary

• Retail turnover for H1 2024 reached €161.6 million (VAT included), up 9.5% year-over-year, with growth in all Baltic countries and online sales rising 24.2% year-over-year.

• Net sales for H1 2024 were €135.2 million, a 9.7% increase compared to H1 2023, with gross profit at €61.2 million and net profit at €7.5 million.

• EBITDA for H1 2024 was €19.6 million (+3.4% year-over-year), with EBITDA margin decreasing from 15.4% to 14.5% due to higher promotional activity and inventory levels.

• The Group opened 2 new stores, reconstructed 7, and closed 2, with net capital expenditure of €3.5 million for expansion and modernization.

Financial highlights

• Gross margin decreased to 45.3% from 45.9% year-over-year, mainly due to increased sales promotions and higher inventory.

• Operating profit for H1 2024 was €9.8 million, up 2.5% year-over-year; profit before tax was €9.1 million (+1.2%).

• Operating expenses rose 9.5% to €51.5 million, in line with sales growth.

• Inventories increased 13.5% to €50.3 million over the last 12 months.

• Dividends of €13.3 million were paid in H1 2024.

Outlook and guidance

• Targeting €350 million turnover (VAT included) for 2024, a 7% increase over 2023.

• Plans to renovate or open 16 stores in 2024, with net investment of about €7 million.