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.

• Board proposes a 33.3% higher gross dividend (€20.0m, €0.299174/share), with a 43.5% payout ratio.

• Integration of Stella Pack completed, contributing significant synergies and future growth.

Financial highlights

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

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

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

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

• Earnings per share increased 20.8% to €0.71.

Outlook and guidance

• 2025 net sales expected at €628.0m (+4.7% vs 2024), 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 targeted at €68.0m.

• Margin improvements driven by favorable mix (skincare/beauty), operational efficiencies, and higher export sales.

• Guidance assumes continued pressure in Ukraine, with no immediate positive impact from potential war resolution.