Rokiskio Suris (RSU1L) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 15.31% YoY to EUR 304,254k as dairy prices and export demand weakened; net profit rose to EUR 15,073k from EUR 12,514k.

• Operating profit increased to EUR 19,356k from EUR 13,042k, while EBITDA reached EUR 29,824k versus EUR 22,890k.

• Record production volumes and higher local-market profitability supported results despite lower export-market prices and demand.

Financial highlights

• Sales EUR 304,254k, down 15.31% YoY; cost of sales declined 17.8% to EUR 262,487k, reflecting lower raw milk, energy and other input costs.

• Gross profit rose 4.71% to EUR 41,767k from EUR 39,888k; operating profit was EUR 19,356k versus EUR 13,042k.

• Profit before tax increased to EUR 17,870k from EUR 12,593k; net profit was EUR 15,073k versus EUR 12,514k, and basic EPS was EUR 0.43 versus EUR 0.36.

• Finance costs increased to EUR 1,486k from EUR 449k; income tax expense was EUR 2,797k versus EUR 79k.

• Adjusting for no items, reported earnings included an EUR 4,690k inventory write-down reversal in the operating cash-flow reconciliation, versus an EUR 5,383k charge in 2022.

Outlook and guidance

• Three-year strategic objectives include 5% annual growth in milk purchased and processed and a 3% net annual yield target.

• 2024 investment priorities include completing projects already underway, modernising production, improving energy efficiency and reducing environmental impacts.

• A new hard-cheese maturation warehouse was planned for completion in H1 2024; its stated building investment value is EUR 2.7m.