Cabka (CABKA) H1 2025 earnings summary

Executive summary

• Revenues for H1 2025 were €90 million, down 2% year-over-year, with US sales up 9% and European sales down 8% due to market volatility, but commercial momentum and operational efficiencies are improving.

• The Shift program delivered cost savings, improved cash flow, and enhanced operational efficiency, focusing on inventory reduction and disciplined capital expenditure.

• U.S. operations are recovering, with new client wins, improved utilization, and market share gains following past disruptions.

• Net result was a loss of €4.7 million, compared to a €1.9 million loss in H1 2024, with basic EPS at -0.19.

• Management transition: new CFO Mark Lettrie joins in September, ensuring continuity.

Financial highlights

• Gross operating margin improved by over 200 basis points to 51.7% from 49.5% year-over-year.

• Operational EBITDA was €9.1 million (10.1% of sales), down 13% year-over-year, mainly due to inventory reduction.

• Operating expenses decreased by 1%, with €1.1 million in underlying savings.

• Capital expenditure was €5.4 million, a 42% reduction from the prior year, split between maintenance and expansion.

• Net debt stable at €72.3 million as of June 30, 2025; gross debt reduced to €75.3 million.

• Cash flow from operating activities improved to €0.2 million from -€4.4 million year-over-year.

Outlook and guidance

• Confident in meeting full-year 2025 guidance, expecting results at least in line with 2024 and improved cash flow profile.

• Shift plan expected to contribute €2 million in annualized benefits and further lower capital expenditure.

• Commercial momentum, new contracts, and growing customer interest in reusable packaging are expected to drive H2 growth.

• Capital Markets Day in November 2025 will provide updates on strategic roadmap and medium-term targets.