Frigoglass (FRIGO) Q2 2024 earnings summary

Executive summary

• Transformation plan advanced, with progress in Commercial Refrigeration and Glass segments.

• Group sales declined 11.7% year-over-year to €231.3m, mainly due to Naira devaluation and lower Glass sales, despite Commercial Refrigeration growth in Q2 and Asia.

• Group EBITDA margin reached 10%, with Commercial Refrigeration at 8.4% (+300bps y-o-y).

• Net loss attributable to shareholders was €6.4m, a significant improvement from €23.4m loss in H1 2023, which included €17.3m restructuring costs.

• €13m year-over-year inventory reduction, mainly from Commercial Refrigeration.

Financial highlights

• Group sales for H1 2024 were €231.3m, down 11.7% year-over-year; Commercial Refrigeration €186.1m, Glass €45.2m.

• Adjusted EBITDA was €22.7m (margin 9.8%), down 17.7% year-over-year.

• Net loss: €6.4m vs. €23.4m loss in H1 2023 (which included €17.3m restructuring costs).

• Gross profit: €34.5m, margin up 120bps to 14.9% due to lower material costs and improved production in Romania.

• Adjusted Free Cash Flow improved, mainly due to tight working capital management and lower capex.

Outlook and guidance

• Focus remains on executing the transformation plan and managing sales amid geopolitical and macroeconomic challenges.

• Continued commercial negotiations in Nigeria to address inflation and FX headwinds.

• FY 2024 capex expected at approximately €25m, mostly for Glass.

• Ongoing cost improvement and inventory management to support profitability and liquidity.