MARR (MARR) Q2 2024 earnings summary

Executive summary

• Total revenues for H1 2024 reached €987.7m, down 1.5% year-over-year, mainly due to challenging market conditions, lower product prices, and food inflation management policies impacting the Canteens segment.

• Operating profitability improved, with EBITDA at €55.6m (+4.3% YoY) and EBIT at €35.4m (+1.8% YoY).

• Net income declined to €17.5m from €18.7m, mainly due to increased cost of debt and higher financial charges.

Financial highlights

• EBITDA margin improved to 5.6% in H1 2024 from 5.3% in H1 2023.

• Net debt before IFRS 16 decreased to €163.6m from €172.4m year-over-year, while total net financial debt at 30 June 2024 was €240.8m, down from €250.1m.

• Trade net working capital reduced to €183.7m from €198.6m, with a shorter cash conversion cycle.

• Free cash flow before dividends and equity changes was €29.6m.

• Personnel costs increased to €25.6m (+7.4% YoY) due to contract renewals and higher headcount.

Outlook and guidance

• July sales increased across all client segments, aided by a favorable calendar effect and aligned with gross margin management objectives.

• The company remains focused on gross margin management and working capital control during the peak summer season.

• Investment plan for 2024 is expected to total around €50m, with logistics projects in Central-Northern and Central-Southern Italy progressing as scheduled.

• The company confirms the going concern assumption based on market trends and financial solidity.