Gr Sarantis (SAR) H1 2024 earnings summary

Executive summary

• Net sales reached a record €302.6 million in H1 2024, up 30.2% year-over-year, driven by strong organic growth and the Stella Pack acquisition.

• EBITDA rose 45.3% to €41.7 million, with EBIT up 47.5% to €31.8 million and EPS up 30.7% to €0.3745.

• Integration of Stella Pack, acquired in January 2024, contributed €39.2 million in sales and €3.6 million in EBIT, with synergies expected in 2024 and 2025.

• Strategic focus remains on Central and Eastern Europe and select international markets, with continued investment in innovation, digital transformation, and infrastructure.

• Enhanced corporate governance with a new Board, four independent directors, and strengthened committees.

Financial highlights

• Gross profit grew 35.5% to €116.8 million, with gross margin up 150 bps to 38.6%; comparable gross margin reached 40.2%.

• EBITDA margin improved by 143 bps to 13.8%; EBIT margin reached 10.5% reported and 10.7% organic.

• Net income increased by 26.8% to €24.3 million, with net income margin at 8.0% and effective tax rate 19.1%.

• EPS up 30.7% to €0.3745.

• Dividend of €15 million paid, up 50% year-over-year, with a 38.2% payout ratio.

Outlook and guidance

• Confident in achieving 2024 guidance of €80 million EBITDA, supported by strong H1 performance and ongoing digital transformation.

• Q3 expected to maintain growth, though sun care category will not contribute as strongly in H2.

• Focus remains on organic growth, portfolio optimization, and operational efficiency.

• Cautious on Ukraine and competitive pressures in H2, but guidance maintained.

• Management emphasizes sustainable organic growth and value-accretive acquisitions.