ASBISc Enterprises (ASB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $645.9M, down 4.2% year-over-year; H1 2024 revenue was $1,359.1M, down 2.7% year-over-year.

• Net income for Q2 2024 was $6.1M, down 46% year-over-year; H1 2024 net income was $20.1M, down 30% year-over-year.

• Gross profit margin in Q2 2024 was 7.97%, nearly stable year-over-year.

• Expansion included new iSpace stores (total 34) and Breezy's entry into Azerbaijan.

• Key challenges included illicit trade in Kazakhstan, war in Ukraine, and weaker demand in CIS.

Financial highlights

• Q2 2024 gross profit: $51.5M (down 5% year-over-year); H1 2024 gross profit: $110.6M (down 4.9%).

• EBIT in Q2 2024 was $15.3M, down 28% year-over-year.

• SG&A costs peaked due to investments and redundancies; cost savings expected in H2.

• Net cash outflows from operations in H1 2024 were $66.1M (vs. $40.6M in H1 2023).

• Dividend payout from 2023 profits reached $0.50/share, the highest in company history.

Outlook and guidance

• Management maintains 2024 guidance: revenues between $3.1B–$3.4B and net profit $60M–$64M.

• H1 2024 results represent 45% of annual revenue and 33% of net income targets.

• Positive trends expected in H2 2024, especially from South Africa and Breezy trade-in business.

• Expect cash from operations to turn positive for the year, with improvement in H2.

• Dividend growth expected to continue, subject to profitability.