Deoleo (OLE) H1 2024 earnings summary

Executive summary

• Revenue grew 25% year-over-year to €502.4M in H1 2024, driven by price increases and resilient sales volumes despite a challenging market with high raw material costs and declining consumption in key markets.

• EBITDA rose 55% to €19.7M, with cost containment and efficiency plans supporting profitability; net profit reached €0.5M, reversing a €9.7M loss in H1 2023.

• Strong brand positioning and effective commercial management enabled market share gains in Spain (+2pp), stable share in the US, and a 2.2pp decline in Italy.

• Sustainability remains central, with 82 mills certified under the Sustainability Protocol (+15.5% YoY), a Platinum EcoVadis rating, and the highest AENOR Good Corporate Governance Index score.

Financial highlights

• Revenue: €502.4M (+25.3% YoY); EBITDA: €19.7M (+55.5% YoY); EBIT: €14.6M (+112.6% YoY); Net profit: €0.5M (vs. €-9.7M in H1 2023).

• Gross profit remained stable at €51.1M (-1.1% YoY) as higher prices offset a 2% volume decline.

• Net debt reduced by 1.4% to €118.7M; working capital increased 6.3% to €108.7M due to higher inventory values.

• Cash and cash equivalents rose 30% YoY to €51.8M; €2M net cash generated from operating activities.

• No dividends were paid in H1 2024.

Outlook and guidance

• The company expects continued high prices and volatility in H2 2024 due to ongoing raw material scarcity until the new harvest.

• Anticipates higher production and potential price easing in the 2024/25 harvest, but remains cautious given sector volatility.

• Focus remains on defending gross margin, cost efficiency, and leveraging strong brands to navigate market challenges.