Berentzen-Gruppe (BEZ) Q4 2024 earnings summary

Executive summary

• Consolidated revenues for 2024 were EUR 181.9 million, down 2.0% year-over-year due to market challenges, inflation, and the sale of the Grüneberg site.

• Despite lower revenues, consolidated EBITDA rose by 20.7% to EUR 19.3 million and EBIT by 37.0% to EUR 10.6 million, reaching the highest EBIT in years, driven by improved gross profits and product margins.

• The sale of the Grüneberg site led to a one-off negative net profit effect of EUR 4.8 million and a net loss of EUR 1.25 million, but is expected to improve long-term EBIT and liquidity.

• Free cash flow remained positive, supporting a proposed dividend of EUR 0.11 per share despite the net loss.

Financial highlights

• Gross profit margin increased by 300 basis points year-over-year, rising from 41.5% to 44.5%, with gross profit up 4.1% to EUR 80.4 million.

• Net profit was negative at EUR 1.3 million, mainly due to exceptional effects and high interest expenses.

• Operating cash flow improved to EUR 12.6 million, and free cash flow turned positive at EUR 2.7 million after two years of negative results.

• Dividend proposal of EUR 0.11 per share despite negative net profit, supported by positive free cash flow.

• EBIT margin improved to 5.8% from 4.1%.

Outlook and guidance

• 2025 revenue forecast: EUR 180–190 million, with underlying growth when adjusted for the Grüneberg sale.

• EBITDA expected at EUR 19–21 million and EBIT at EUR 10–12 million for 2025.

• Significant increase in marketing spend to EUR 5 million in 2025, aiming for double-digit growth in key brands.

• Double-digit growth expected for Mio Mio and Minis segments in 2025.

• Dividend proposal reflects confidence in future development despite current-year loss.