Hawesko Holding (HAW) Q1 2023 earnings summary

Executive summary

• Q1 sales rose 2.4% YoY to €153.1m amid restrained consumer spending; EBIT was €5.7m, down from €9.3m, including a €1.9m prior-year provision reversal.

• Adjusting for the prior-year provision reversal, EBIT declined €1.7m, mainly reflecting weaker e-commerce sales and persistent inflation-related costs.

Financial highlights

• Revenue increased €3.6m YoY to €153.1m; gross profit was nearly flat at €66.8m as gross margin eased to 43.7% from 44.6%.

• Reported EBIT was €5.7m versus €9.3m; prior-year EBIT included a €1.9m litigation-provision reversal. Adjusted EBIT was €5.7m versus €7.4m.

• Net income was €3.1m versus €5.8m; EPS was €0.33 versus €0.62.

• Personnel expenses rose 5.8% to €19.2m; advertising expenses fell 1.2% to €11.1m, while commission expenses rose 7.8% to €10.2m.

Outlook and guidance

• FY 2023 guidance remains unchanged: sales change +2% to -3% and EBIT before possible restructuring costs of €37m–€42m.

• FY free cash flow is expected at €18m–€22m, including costs for the planned e-commerce warehouse extension; ROCE guidance is 14%–18%.

• Consumer restraint and high inflation are expected to persist; hotel and restaurant trade recovery is expected to continue, while e-commerce may face lower-priced purchases.