Mewah International (MV4) H1 2024 earnings summary

Executive summary

• H1 2024 revenue fell 10.6% YoY to US$1,909.8M, while operating margin rose 10.6% to US$98.5M and equity-holder profit increased 82.7% to US$18.6M.

• Performance benefited from higher margins in both segments, cost controls and favorable exchange rates; a US$4.2M PPE impairment partly offset the improvement.

Financial highlights

• Gross profit increased 7.8% to US$138.8M as cost of sales fell 11.8% to US$1.771bn.

• Profit before tax rose 89.6% to US$22.8M; profit for the period increased 70.6% to US$15.8M, and income tax expense was US$7.0M versus US$2.8M in H1 2023.

• Other income nearly doubled to US$7.8M, including US$5.1M interest income; finance expense declined 11.1% to US$12.7M.

• Operating cash flow was US$1.9M after US$29.5M of working-capital outflow and US$17.0M of net interest and tax; operating cash flow before working-capital changes was US$48.4M versus US$39.5M.

Segment performance

• Bulk revenue fell 11.4% to US$1,314.8M as volume declined 3.8% to 1,458.3K MT and ASP fell 7.9% to US$901.6/MT; operating margin rose 5.2% to US$48.9M.

• Consumer Pack revenue fell 8.7% to US$595.0M as volume slipped 0.2% to 606.7K MT and ASP declined 8.4% to US$980.7/MT; operating margin rose 16.4% to US$49.6M.

• Total sales volume declined 2.8% to 2,065.0K MT; operating margin per MT increased 13.8% to US$47.7 from US$41.9.

• Adjusted EBITDA was US$52.8M: Bulk US$29.5M and Consumer Pack US$23.3M.