B&S Group (BSGR) H1 2024 earnings summary

Executive summary

• Turnover grew 4.2% year-over-year to €1,102.1 million, with strong growth in Personal Care (+10.9%), Food (+14.0%), Health (+13.8%), and Travel Retail (+26.5%), while Liquors declined by 11.2%.

• EBITDA increased by 25% to €52.7 million, with margin rising to 4.8% from 4.0% in HY 2023.

• Net profit reached €16.4 million, with EPS doubling to €0.16.

• Net debt increased to €425 million, mainly from inventory build-up and acquisitions, with net debt/EBITDA at 3.4.

• Strategic focus included operational excellence, digitization, and investments in inventory, automation, and G&D contracts.

Financial highlights

• Gross profit increased by 5.2% to €166.0 million, with margin up to 15.1% from 14.9%.

• Normalized EBITDA margin rose to 4.8%; net cash from operations was negative at €-44.1 million due to inventory build-up.

• Staff costs increased 4.8% to €83.3 million due to inflation and labor market tightness.

• Working capital increased to €528 million, with inventory up €53 million and trade receivables up 13%.

• Dividend of €13.5 million paid to minority shareholders.

Outlook and guidance

• Reaffirmed targets of 5%-7% topline growth and 5%-6% EBITDA margin for 2024.

• Inflation and higher container prices expected to impact costs and margins in H2.

• Expectation of normal business seasonality in working capital movements in H2, with deleveraging anticipated in Q4.