Hawesko Holding (HAW) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales were €151m, down 5% YoY, with adjusted EBIT of €6.1m; H1 sales reached €294.2m and adjusted EBIT €9.9m.

• Weak consumer demand and the European Football Championship weighed on sales; cost discipline and pricing, assortment and operational measures supported margins and cash flow.

Financial highlights

• H1 revenue was €294.2m, down 5.0% YoY; gross profit fell 2.7% to €131.8m as gross margin rose 1.1pp to 44.8%.

• Adjusted EBITDA was €22.4m versus €25.1m; adjusted EBIT was €9.9m versus €13.4m, while reported EBIT was €9.6m versus €12.7m.

• Consolidated net income was €3.9m versus €6.7m; net income attributable to shareholders was €3.7m versus €6.5m, and EPS was €0.41 versus €0.72.

• Operating cash flow was €3.7m versus an outflow of €20.2m; free cash flow was -€5.0m versus -€36.8m.

Outlook and guidance

• FY2024 sales are expected to match or slightly exceed the prior year; adjusted operating EBIT is expected to reach at least the prior-year level.

• FY2024 free cash flow guidance is €14m–€20m and ROCE guidance is 14%–16%.

• H2 B2B sales are expected to recover to the prior-year level; Retail is expected slightly above and E-Commerce at least at the prior-year level.

• H2 remains challenging, but expected economic improvement, growth measures and continued cost management are expected to support earnings.