Gr Sarantis (SAR) H2 2024 earnings summary

Executive summary

• Achieved record net sales of €600.1m in FY 2024, up 24.4% year-over-year, driven by organic growth and the Stella Pack acquisition.

• EBITDA increased by 32.5% to €81.6m, with margin expansion to 13.6%; EBIT rose 29.6% to €61.0m.

• Net income grew 17.1% to €46.0m; EPS up 20.8% to €0.7125.

• Proposed dividend payout of €20.0m, up 33.3% from last year, with a payout ratio of 43.5%.

• Completed Stella Pack integration, contributing significant synergies and milestones.

Financial highlights

• Gross profit reached €226.2m (+24.1%), with gross margin stable at 37.7%.

• EBITDA margin improved to 13.6% (+82bps); EBIT margin at 10.2% (+40bps); net profit margin at 7.7%.

• Free cash flow for 2024 was €32.8m; net debt at year-end was €8.5m, with a net cash position expected by early 2025.

• Share buyback program cost €15.8m; early debt prepayment of €18.0m reduced financing costs.

• Dividend payout ratio increased to 43.5% from 38.2%.

Outlook and guidance

• 2025 net sales expected at €628.0m (+4.7%), EBITDA at €92.0m (+12.7%), and EBIT at €70.0m (+14.8%).

• EBITDA margin projected to expand to 14.6% (+100bps); EBIT margin to 11.1% (+90bps).

• Capex for 2025 set at €40.0m (+127%), with free cash flow forecasted at €68.0m.

• Margin improvement driven by favorable category mix and operational efficiencies.

• Guidance assumes continued risk in Ukraine and normalization after exceptional 2024.