Elopak (ELO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached EUR 288.4 million, up 4% year-over-year, with underlying growth at 6% after adjusting for IFRS 15 effects and strong Pure-Pak® volume growth in Europe and Americas.

• Adjusted EBITDA rose to EUR 45 million, with a margin of 15.2%, up from EUR 40 million last year.

• Record dividend of EUR 34.4 million paid, yielding 4%, the highest since IPO.

• NOK 2.5 billion green bond issued and EUR 210 million revolving credit facility signed, supporting a strong capital structure with leverage at 1.9x.

• Strategic investments continue, including a new US plant with EUR 23 million paid out of a planned USD 70 million.

Financial highlights

• Q2 2024 revenue: EUR 288.4 million (up 4% year-over-year); YTD revenue: EUR 580.3 million (up 3.4%).

• Adjusted EBITDA: EUR 45 million (Q2), margin 15.2%; YTD adjusted EBITDA: EUR 91 million.

• Cash flow from operations reached EUR 83 million, an all-time high for the first half.

• Net debt at EUR 339 million, up EUR 26 million for the quarter, mainly due to dividend and US plant investment.

• Adjusted profit attributable to shareholders: EUR 15.9 million (Q2), EUR 37.4 million (YTD).

Outlook and guidance

• Positive momentum and higher financial run rates from H1 2024 expected to continue into H2 2024.

• Some financial impact from the Americas supply incident anticipated in H2, with outlook incorporating this uncertainty.

• Working capital expected to worsen slightly in H2 due to higher filling machine inventory.

• New US plant in Little Rock to increase capacity in H1 2025; construction progressing as planned.

• Ongoing focus on sustainability-driven growth, margin optimization, and operational improvement.