Racing Force (RFG) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 6.4% to €62,656,072; adjusted EBITDA was €9,619,660 and net income €4,793,271, both below 2022 levels.

• EMEA and APAC growth offset lower Americas sales; investment and hiring expanded capacity as margins and operating cash flow weakened.

Financial highlights

• Gross profit reached €38,660,708, with gross margin at 61.7% versus 62.5% in 2022; lower-margin Other-category sales and product mix weighed on margin.

• Adjusted EBITDA was €9,619,660, or 15.4% of revenue, versus €11,685,165; EBIT was €6,278,399 versus €8,813,517.

• Net income fell to €4,793,271 from €7,549,063; net finance costs rose to €508,690 from €100,029, while taxes were €976,438.

• Operating cash flow declined to €983,649 from €3,156,686; inventory absorbed €3,510,969 and customer receivables €1,099,886.

Segment performance

• Driver’s Equipment sales rose 4.7% to €45,043,360, led by racewear, particularly racing suits; the category represented 71.9% of revenue.

• Car Parts revenue fell 1.3% to €13,156,128, primarily due to supply timing for some car manufacturers.

• Other-category revenue rose 76.5% to €4,456,584, mainly reflecting Racing Spirit products; lower average margins weighed on gross margin.

• EMEA revenue rose 11.2% to €40,975,660 and APAC increased 15.0% to €6,935,531; Americas fell 7.8% to €14,744,881, or grew 4.6% excluding prior-year one-off supply and FX effects.