HKFoods (HKSAV) Q2 2024 earnings summary

Executive summary

• Net sales from continuing operations rose 8.8% year-over-year to €254.6M in Q2 2024 and 6.9% to €483.3M for Jan–Jun 2024, driven by strong retail performance and exports.

• Comparable EBIT improved to €4.4M in Q2 2024 and €5.8M for H1, supported by a better sales mix, production efficiency, and cost savings despite high costs.

• Major restructuring included the completed sale of the Swedish business and an agreement to sell the Danish business, strengthening the balance sheet and reducing net debt.

• Financing continuity was secured through the issuance of €90M in secured senior notes and a new €20M revolving credit facility, both maturing in 2027.

• Strategic focus is on profitability, production efficiency, and product innovation, with investments in ready-to-eat products.

Financial highlights

• Q2 2024 net sales: €254.6M (Q2 2023: €234.1M); comparable EBIT: €4.4M (Q2 2023: €4.2M); EBIT margin: 1.7%.

• H1 2024 net sales: €483.3M (H1 2023: €452.1M); comparable EBIT: €5.8M (H1 2023: €2.0M).

• Profit for the period was -€1.7M in Q2 and -€5.5M in H1; EPS at -€0.03 in Q2 and -€0.09 in H1.

• Cash flow from operating activities was €13.1M in Q2 and €14.9M in H1.

• EBITDA for Q2 2024 was €11.4M; for H1, €20.3M.

Outlook and guidance

• 2024 outlook unchanged: comparable EBIT from continuing operations expected to improve versus 2023.