Grupa RECYKL (GRC) Q4 2024 earnings summary

Executive summary

• Consolidated sales revenue reached a record PLN 133.7m in 2024, up 4.3% year-over-year, driven by a 20.4% increase in tire recovery and recycling services to PLN 32.8m.

• Operating profit hit an all-time high of PLN 18.2m, while net profit was PLN 10.9m, stable compared to PLN 11.1m in 2023.

• Dividend of PLN 1.20 per share (PLN 2m total) was paid, using all 2023 profit and reserve capital; total dividends since 2022 reached PLN 4m.

• Tire processing volume rose to 135k tons (+10.7% y/y), with SBR granulate and powder sales up 13.4% to over 60k tons.

• Strategic initiatives included M&A due diligence in Lithuania and Germany, and expansion of the innovative SMAPOL product via partnerships and international events.

Financial highlights

• Revenue: PLN 133.7m (+4.3% y/y); Operating costs: PLN 118.2m; Operating profit: PLN 18.2m (+9.7% y/y).

• Net profit: PLN 10.9m (-2.2% y/y); EBITDA: PLN 26.9m (-10.1% y/y); EBIT margin: 13.6%; Net margin: 8.1%.

• Total assets: PLN 202.8m (+5.2% y/y); Equity: PLN 71.3m (+14.3% y/y); Net debt: PLN 64.8m (+19.3% y/y).

• Cash flow from operations: PLN 25.2m; investments: PLN 22.2m; negative net cash flow: PLN -4.8m.

Outlook and guidance

• Management expects continued revenue and profit growth, supported by increased production capacity, network expansion, and commercialization of R&D outputs.

• Key investments planned for 2025 include further photovoltaic installations, new SMAPOL production line, and expansion into Baltic and German markets.

• Strategic goals for 2030: cumulative revenue ≥ PLN 1bn, EBITDA ≥ PLN 280m, net profit ≥ PLN 150m, and dividend payouts totaling PLN 30m.