Hawesko Holding (HAW) Q3 2024 earnings summary

Executive summary

• Q3 sales were €139m and operating EBITDA €11m, an 8.0% return, with EBITDA on par with the prior year; nine-month sales were €433.0m, down 4.0% YoY.

• Q3 was the strongest performance so far in 2024, narrowing the sales and earnings gap to 2023; management expects Christmas initiatives to support further improvement.

Financial highlights

• Nine-month sales revenue was €433.0m, down 4.0% YoY; gross profit was €194.0m, down 1.8%, while the gross profit margin rose 1.0 percentage point to 44.8%.

• Adjusted operating EBITDA was €33.6m, down 7.6% YoY; adjusted operating EBIT was €14.5m, down 23.1%. Reported EBIT was €13.8m versus €9.7m.

• Net income from continuing operations was €5.8m; total consolidated net income was €4.8m, including a €1.0m discontinued-operation loss. EPS was €0.51 versus €0.32.

Outlook and guidance

• FY2024 sales are expected to remain slightly below 2023; operating result is forecast at €32m–€34m, with the prior-year result still possible if Q4 market conditions improve.

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

• Q4 sales are expected above prior year in Retail, at prior-year level in E-Commerce and slightly below prior year in B2B; cost management and cross-segment growth measures continue.