Fodelia (FODELIA) Q2 2024 earnings summary

Executive summary

• Strategy shifted from a holding-company model to an active food-industry operator, concentrating investment on businesses with stronger profitable-growth potential.

• May divestments of Perniön Liha and Helsingin Makkaratehdas sharpened the focus on foodservice and consumer products.

• H1 continuing-operations sales grew 18.4%; adjusted EBIT rose 32.1% to €1.312m, while divestment-related charges reduced reported results.

• Q2 continuing-operations sales grew 15.6% and adjusted EBITA improved 25.1%; reported operating profit was -€749k after non-recurring divestment charges.

• Feelia signed a multi-year HUS agreement through 2030, with estimated annual sales of €1.5–1.7m.

Financial highlights

• H1 net sales were €27.192m, up 12.1%; Q2 sales were €13.518m, up 7.9% year over year.

• H1 adjusted EBITDA was €2.369m (8.7% margin); adjusted EBITA was €1.521m and adjusted EBIT was €1.312m.

• H1 reported operating profit was €58k after €1.254m of net divestment-related charges; reported profit was -€645k and EPS was -€0.10.

• Q2 adjusted EBIT was €504k (3.7% margin), versus €530k a year earlier; reported profit was -€1.2m.

• H1 operating cash flow was €2.309m, versus €403k; investing cash flow was €1.430m, including €2.246m from divestments.

Outlook and guidance

• FY2024 net sales guidance remained €50–54m; operating profit margin excluding non-recurring items is expected to increase year over year.

• Long-term targets include ~20% annual sales growth, sales of at least €100m and operating margin above 10% by 2028, ROI above 10%, and interest-bearing liabilities/EBITDA below 3.

• Growth priorities include organic and inorganic opportunities, Feelia ready meals and new product concepts across foodservice and consumer snack markets.

• Dividend ambition is to distribute at least 35% of earnings; stated targets are not forecasts.