Berentzen-Gruppe (BEZ) Q2 2024 earnings summary

Executive summary

• Launched new corporate strategy, Building Berentzen 2028, focusing on profitability and operational excellence.

• Adjusted consolidated EBIT rose 55% year-over-year to EUR 5.1 million, driven by margin recovery and successful product launches, despite stable revenues in a challenging market.

• Initiated divestment of the Grüneberg production site to address underperformance in the non-alcoholic beverage segment, resulting in a one-off, mainly non-cash, negative effect of EUR 4.9 million in 2024 but expected to improve EBIT and free cash flow.

• Earnings guidance for 2024 was raised, with adjusted EBIT now expected at EUR 9.0–11.0 million and adjusted EBITDA at EUR 18.0–20.0 million.

• Navigated tough retail negotiations and challenging market conditions, including inflation-induced consumer reticence.

Financial highlights

• Revenues declined slightly by 1% year-over-year to EUR 88.1 million due to weak consumer spending and halted promotions by a key retail partner.

• Gross profit margin increased by 250 basis points to 44.1% year-over-year, driven by price increases and lower material costs.

• Adjusted consolidated EBIT: EUR 5.1 million (up 55% year-over-year); EBITDA: EUR 9.4 million (up 29.2% year-over-year).

• Consolidated profit fell to -EUR 2.9 million, mainly due to one-off, largely non-cash effects from the Grüneberg divestment.

• Operating cash flow improved by 74% to EUR 7.4 million; free cash flow improved by nearly EUR 12 million year-over-year, though still negative at EUR -8.0 million due to seasonality.

Outlook and guidance

• Adjusted EBIT guidance for 2024 raised to EUR 9.0–11.0 million (previously EUR 8.0–10.0 million); adjusted EBITDA guidance increased to EUR 18.0–20.0 million (previously EUR 17.2–19.2 million).

• Revenue guidance lowered to EUR 185–195 million due to the Grüneberg divestment and discontinuation of regional brands.

• Higher EBIT and EBITDA margins anticipated.

• Cash flows and financial position expected to remain solid; equity ratio forecast unchanged at 30–33%.