Hawesko Holding (HAW) Q4 2024 earnings summary

Executive summary

• FY24 sales declined 1.9% to €639.5m; adjusted operating EBITDA held at €58.1m, while operating EBIT fell 5.9% to €32.3m as depreciation rose after logistics and IT investment.

• Sales momentum improved through the year, with Retail, B2B and e-commerce all recording year-on-year growth in Q4; full-year profitability benefited from gross-margin improvement and cost discipline.

• Net income was €12.9m, including a €0.9m loss from discontinued operations; the proposed dividend is €1.30 per share, unchanged from the prior-year proposal.

Financial highlights

• Sales were €639.5m versus €651.6m in 2023 (-1.9%); gross profit was €284.5m, with gross margin rising to 44.5% from 43.8%.

• Adjusted operating EBITDA was €58.1m, up 0.2%, with a 9.1% margin; operating EBIT was €32.3m, down 5.9%, with a 5.0% margin.

• Reported EBIT was €30.5m versus €24.5m; net income was €12.9m versus €8.8m, and basic EPS was €1.38 versus €0.90.

• Restructuring adjustments totalled €1.8m; 2023 included an €8.2m Wein & Co. goodwill impairment, while no goodwill impairment was recorded in 2024.

• Free cash flow improved to €45.6m from -€4.3m, mainly on stronger operating cash flow and lower investment spending after completion of the Tornesch warehouse.

Outlook and guidance

• FY25 sales are expected to rise slightly, by up to 2%; operating EBIT is forecast broadly unchanged at €31m–€34m, before up to €2m of restructuring adjustments.

• FY25 free cash flow guidance is €14m–€20m and operating ROCE is expected at 11%–14%.

• Retail is forecast to deliver slight sales growth and stable operating EBIT; B2B expects at most slight sales growth and a slight EBIT improvement.

• E-commerce sales are expected to at least match FY24, with operating EBIT slightly higher; Miscellaneous operating EBIT is expected to remain at the prior-year level.

• Plans call for further debt and inventory reduction; no material acquisitions or investment beyond normal-course spending are envisaged.