Grigeo (GRG1L) Q2 2024 earnings summary

Executive summary

• Revenue rose by 1% to €104.3m over 6 months of 2024 compared to the same period last year, while EBITDA fell by 24% and profit before tax dropped by 31%.

• Tissue paper segment revenue grew 6.1% year-over-year, but gross margin declined due to higher raw material costs.

• Wood fibre boards segment maintained revenue but saw gross profit surge 77% and margin rise from 13.5% to 24.1%.

• Raw materials for corrugated cardboard segment revenue fell 3.9% year-over-year, with gross margin down to 20.4%.

Financial highlights

• Net profit for 6 months was €10.0m, down from €14.6m year-over-year.

• Adjusted EBITDA was €16.7m, a 24% decrease from €22.0m in the prior year.

• Gross margin declined to 23.4% from 26.0% year-over-year.

• Basic EPS was €0.080, down from €0.111; diluted EPS was €0.079, down from €0.110.

• Cash and cash equivalents at period end were €13.7m, down from €19.0m at year-end 2023.

Outlook and guidance

• Management notes ongoing uncertainty due to the war in Ukraine, especially regarding the Ukrainian subsidiary Mena Pak AT.

• No material events or changes in risk factors after the reporting period.