Hawesko Holding (HAW) Q3 2023 earnings summary

Executive summary

• 9M 2023 sales were €457.6m, down 0.6% YoY; adjusted EBIT was €18.6m versus €20.6m, as cost savings partly offset weak demand and inflation.

• Q3 sales were €143m, down just under 3%; adjusted EBIT held at €5.3m, matching the prior-year level.

Financial highlights

• 9M gross profit was €201.4m, down 0.8%; gross margin was 44.0% versus 44.1%, supported by price increases across segments.

• Adjusted EBIT fell 9.6% to €18.6m; reported EBIT was €9.6m versus €22.5m, including the WEIN & CO goodwill impairment.

• Consolidated net income was €3.2m versus €17.0m; €2.9m was attributable to shareholders, with EPS of €0.32 versus €1.84.

Outlook and guidance

• Q4 sales and EBIT are expected to be on par with prior year; FY 2023 sales forecast is up to 3% lower and adjusted operating result, after restructuring costs, is €32m–€35m.

• FY 2023 free cash flow guidance is €9m–€12m; ROCE is expected at 14%–18%.

• Planned B2B growth is not expected to fully offset e-commerce weakness; profitability also faces start-up costs for international growth initiatives.