Hawesko Holding (HAW) Q4 2023 earnings summary

Executive summary

• 2023 sales were €660.3m, down 1.7% YoY; operating EBIT was €34.0m, down 9.1%, as growth in Retail and B2B was offset by weaker e-commerce.

• Cost discipline and pricing supported gross margin, but profitability, operating ROCE and free cash flow fell; 2024 plans target modest sales and earnings growth despite continued market pressure.

Financial highlights

• Sales €660.3m vs €671.5m in 2022; gross profit €290.3m vs €293.7m, with gross margin rising to 44.0% from 43.7%.

• Adjusted operating EBIT €34.0m vs €37.4m; reported EBIT €24.2m vs €39.1m, including €8.2m Wein & Co. goodwill impairment and €1.6m restructuring costs.

• Consolidated net income €8.8m vs €26.2m; attributable earnings €8.1m vs €25.6m; EPS €0.90 vs €2.85.

• Operating EBITDA €57.7m, 8.7% of sales, vs €60.1m, 9.0%; reported EBITDA €56.1m, 8.5% of sales, vs €61.8m, 9.2%.

Outlook and guidance

• 2024 sales expected to rise by up to 2%; operating EBIT guidance €36–40m, with up to €2m of restructuring costs reducing reported EBIT accordingly.

• Free cash flow forecast at €16–22m and operating ROCE at 14–16%; plans prioritize debt reduction and lower inventories, with no substantial long-term investments or acquisitions planned.

• Retail sales expected to grow slightly; B2B sales broadly flat with mild operating EBIT growth; e-commerce sales expected to stabilize, with a turnaround anticipated and structural changes weighing €1–2m on EBIT.