Deoleo (OLE) H1 2024 earnings summary

Executive summary

• Revenue grew 25% year-over-year to €502.4m, driven by higher sales prices despite flat volumes and challenging market conditions.

• EBITDA rose 55% to €19.7m, reflecting cost control, efficiency measures, and operational improvements.

• Net profit reached €0.5m in H1 2024, reversing a €9.7m loss in 1H23, amid high raw material prices and declining consumption.

• Strategy focused on brand prioritization, quality, innovation, and sustainability, with notable ESG recognitions.

Financial highlights

• Gross profit remained stable at €51.1m despite a 25% increase in revenue, as gross margin defense offset volume declines.

• Operating expenses fell 19.5% year-over-year, supporting EBITDA margin expansion to 3.9%.

• Net debt decreased to €118.7m from €120.4m at year-end 2023, and working capital increased 6% to €108.7m.

• Cash and cash equivalents rose to €52m, up 30% from June 2023.

Outlook and guidance

• The outlook for the second half remains challenging due to ongoing raw material scarcity, high prices, and price volatility until the new harvest.

• Management expects continued volatility and falling consumption but is positioned to take advantage of strategic procurement opportunities.

• Positive expectations for the next harvest, with anticipated production increases due to favorable weather.

• Debt refinancing is targeted for completion before year-end 2024, with Standard & Poor's maintaining ratings and outlook.