Hawesko Holding (HAW) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue was €144.1 million, down 5.9% YoY; adjusted EBIT was €3.7 million versus €5.7 million, with fewer working days adding pressure.

• Retail sales held slightly above the prior year, while e-commerce and B2B declined amid subdued demand, order-delivery delays and lower promotional activity.

• Full-year guidance remained unchanged: sales growth of up to 2% and operating EBIT of €34–38 million.

Financial highlights

• Gross profit was €64.2 million, down 4.0% YoY; adjusted EBIT was €3.675 million, down 35.7%, and reported EBIT was €3.665 million versus €5.619 million.

• Consolidated net income was €1.393 million versus €2.975 million; net income attributable to shareholders was €1.318 million versus €2.843 million.

• Basic and diluted EPS was €0.15 versus €0.32; the share count remained 8.983 million.

• Operating cash flow was negative €3.8 million versus negative €16.1 million; free cash flow was negative €8.2 million versus negative €23.1 million.

Outlook and guidance

• FY 2024 guidance was maintained: sales growth of up to 2%, operating EBIT of €34–38 million, free cash flow of €14–20 million and ROCE of 14–16%.

• Management expects catch-up effects after the weak Q1 and a slight improvement in sales over the year, particularly in Retail; a more noticeable economic recovery is expected in H2.

• B2B sales are expected to remain at the prior-year level, with operating EBIT rising slightly; e-commerce sales are expected to reach at least the prior-year level by year-end.

• At least the prior-year operating result is expected, supported by structural gross-margin improvements, cost discipline, efficiency and productivity measures.