PCC Rokit (PCR) Q1 2024 earnings summary

Executive summary

• Q1 2024 saw a slight upturn sequentially, but results remained below expectations due to weak economic conditions in key markets, especially Germany and the EU.

• Consolidated sales reached €241.7 million, up 7.2% from Q4 2023 but well below Q1 2023's €312.6 million.

• EBITDA improved to €15.3 million after a break-even January, but was significantly lower than €53.8 million in Q1 2023.

• Operating loss (EBIT) was €5.3 million, compared to a €34.6 million profit in Q1 2023; pre-tax loss (EBT) was €12.3 million versus a €18.1 million profit year-over-year.

• Persistent weak demand, aggressive non-European exports, and geopolitical uncertainties weighed on performance.

Financial highlights

• Gross profit for Q1 2024 was €75.5 million, down nearly a third from €111.8 million in Q1 2023; gross margin was 31.2% (Q1 2023: 35.8%).

• Group headcount at March 31, 2024 was 3,268, down from 3,415 a year earlier.

• Redemption of a €21.1 million bond occurred on April 2, 2024.

Outlook and guidance

• Management expects a reversal of negative earnings in the Holding & Projects segment in Q2 2024 due to dividend distributions.

• Order backlogs and certifications in some business units suggest a more optimistic outlook for the next quarter.