Bera (BERAHF) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended August 31, 2024, was ISK 24.0 billion, up 0.6% year-over-year, with Q2 revenue at ISK 12.7 billion, down 0.4% from Q2 2023.

• EBITDA for the six months was ISK 2.71 billion, down 12.3% year-over-year, mainly due to higher wage and marketing costs.

• Net profit for the period was ISK 1.41 billion, down 34.5% year-over-year; adjusted for one-time income last year, profit declined by 20%.

• Gross margin for Q2 was 32.6%, down 1.1 percentage points; for six months, 33.4%, up 0.2 points.

• Sales to restaurants, hotels, and fast food outlets fell 6% by volume, while supermarket and business sales remained stable.

Financial highlights

• Six-month EBITDA margin decreased to 11.3% from 13.0% year-over-year; EBIT margin fell to 9.0% from 10.9%.

• Net interest-bearing debt including lease liabilities was ISK 7.54 billion at period end, up ISK 1.79 billion since fiscal year start; NIBD/EBITDA ratio rose to 1.5.

• Equity ratio at period end was 48%, with equity totaling ISK 15.3 billion.

• Cash position decreased sharply to ISK 158 million at period end.

• Dividend of ISK 1.42 billion paid in June 2024.

Outlook and guidance

• Management revised 2024 EBITDA guidance to ISK 4.9–5.3 billion, mainly due to Collab export investment; excluding Collab export, guidance would be ISK 5.2–5.6 billion.

• Focused export strategy for Collab beverage, prioritizing Denmark and northern Germany based on market research.

• New distribution center and water bottling plant planned at Hólmsheiði to improve operational efficiency and enable production expansion.

• Revenue up 1% so far in Q3; continued pressure from large customers and challenging conditions for some bars and restaurants.