Virsi-A (VIRSI) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 14.1% year-over-year to €185.3 million, with growth in all core segments and continued network expansion, including new stations and entry into Lithuania.

• EBITDA for H1 2024 was €6.3 million, a 16.9% decrease year-over-year, mainly due to higher costs and lower energy segment profits.

• Net profit for H1 2024 was €2.0 million, down from €3.2 million in H1 2023, impacted by increased operating expenses and energy segment margin pressure.

• Strategic investments exceeded €10 million, focusing on network expansion, EV charging, and biomethane facility development.

• Employee value creation advanced, with a top-4 employer ranking in Latvia and expansion into the Lithuanian labor market.

Financial highlights

• Gross profit increased to €19.1 million, up from €17.9 million year-over-year, with non-fuel segments contributing 48% of total gross profit.

• EBITDA margin decreased to 3.4% from 4.7% in H1 2023.

• Net profit margin for H1 2024 was 1.1%, compared to 1.9% in H1 2023.

• ROE was 5.7% (H1 2024), with adjusted ROE at 7.7%.

• Net debt/EBITDA increased to 2.1, reflecting higher leverage but remained within loan covenant limits.

Outlook and guidance

• Future growth expected from new stations and projects, with a focus on expanding in Lithuania and launching a biomethane facility in 2025.

• No immediate plans for further equity or bond issues; bank financing preferred due to favorable terms.

• Ongoing geopolitical tensions and legislative changes are expected to drive energy price volatility and support alternative fuels growth.