B&S Group (BSGR) Q4 2024 earnings summary

Executive summary

• Turnover increased 8.9% to €2,417.0 million, with all segments except Liquors contributing positively; EBITDA rose 12.9% to €125.2 million, and a margin of 5.2%.

• Strategic focus on building autonomous, accountable segments, operational excellence, digitization, and sustainability, with CSRD programs on track.

• Liquors segment faced a 5.3% turnover decline due to geopolitical tensions, inventory one-offs, and market oversupply, prompting a strategic shift to reduce exposure to market-specific SKUs.

• Acquisition of Tastemakers Holding B.V. added €12.5 million to Personal Care turnover; completed buyout of remaining 5% in Personal Care for €12.8 million.

• Proposed dividend increase to €0.19 per share, a payout ratio of 40% of attributable profits.

Financial highlights

• Gross profit increased 5.4% to €362.1 million, margin at 15.0% (down from 15.5%); net profit from continuing operations was €47.2 million, with EPS up 17.5% to €0.47.

• Net cash from operations declined to €29.7 million from €79.5 million, reflecting higher inventory and receivables.

• Net debt increased to €380.8 million, with net debt/EBITDA leverage at 3.0; solvency ratio at 26.6%.

• Operating expenses rose by €10 million to €243 million, mainly due to 8% higher staff costs.

• Inventory days increased from 89 to 96, mainly due to beauty and personal care; working capital rose to €512.8 million.

Outlook and guidance

• Projected consolidated topline growth of ~5% for 2025, with EBITDA margin expected between 5% and 6%.

• Modest increases in staff and operating expenses expected; positive cash flow anticipated from working capital normalization.

• Liquors and Travel Retail segments expected to underperform, but margin improvement targeted in Liquors.

• No material one-off effects assumed in 2025 base case, barring unforeseen global events.

• Ongoing geopolitical tensions anticipated to impact business lines.