Grupa RECYKL (GRC) Q3 2024 earnings summary

Executive summary

• Consolidated sales revenue for Q3 2024 increased by 12.6% year-over-year, with net profit up 67.4% and EBITDA up 1.8%.

• Year-to-date, sales rose 7.4% and net profit grew 30% compared to the first three quarters of 2023.

• Growth was driven by higher volumes and prices in granulate and powder sales, as well as increased recycling service revenues.

• The group maintained its position as the largest rubber granulate producer from used tires in Central and Eastern Europe.

Financial highlights

• Q3 2024 consolidated revenue: 36.1m PLN (+12.6% y/y); net profit: 3.39m PLN (+67.4% y/y); EBITDA: 7.29m PLN (+1.8% y/y).

• Year-to-date consolidated revenue: 100.9m PLN (+7.4% y/y); net profit: 9.73m PLN (+30% y/y); EBITDA: 21.9m PLN (-2.1% y/y).

• Gross margin, EBIT, and net margin all improved year-over-year.

• Current ratio improved to 1.04 from 0.92.

Outlook and guidance

• Management is positive about the period's results despite challenging market conditions.

• No financial forecasts for 2024 were published.

• Strategic focus remains on expanding collection networks, product innovation, and international expansion.