Unimot (UNT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached PLN 3,483 million, with adjusted EBITDA at PLN 80.4 million and net profit at PLN 39 million, reflecting a year-over-year decline in profitability despite revenue growth.

• H1 2024 sales revenue totaled PLN 6,479 million, adjusted EBITDA was PLN 127.8 million, and net profit was PLN 55.4 million, showing resilience amid challenging market conditions.

• The group advanced its 2024–2028 strategy, focusing on energy transition, climate neutrality by 2050, and investments in renewables and low-carbon products, including HVO 100% diesel fuel.

• Key operational developments included the lease of LPG and diesel storage terminals in Germany, expansion in aviation and marine fuels, and the opening of the first AVIA Truck station.

• Dividend of PLN 4.00 per share was paid from 2023 profits, and new Supervisory Board members were appointed.

Financial highlights

• Q2 2024 revenues increased by 7.2% year-over-year to PLN 3,483 million, with gross profit on sales up 15.5% to PLN 222.7 million.

• H1 2024 sales revenue was PLN 6,479 million (down 1% y/y); adjusted EBITDA was PLN 127.8 million (down 24% y/y); net profit was PLN 55.4 million (down 90% y/y due to a one-off gain in 2023).

• Gross margin on sales improved to 6.4% from 5.9% a year earlier; operating profit margin fell to 1.7% from 15.0% year-over-year.

• EBITDA margin was 2.6%; net margin 0.9%; ROE 4.9%; ROA 1.5%.

• Cash and cash equivalents decreased by 23% to PLN 315.5 million; inventories increased by 120% due to compulsory reserves.

Outlook and guidance

• Focus on diversifying product portfolio, especially higher-margin products like fuel oil, aviation, and marine fuels.

• Anticipated margin opportunities from upcoming sanctions on Russian LPG and increased supply chain flexibility.

• The group discontinued publishing financial forecasts due to high market volatility, ongoing war in Ukraine, and regulatory uncertainty.

• Management expects improvement in financial ratios by Q4 2024 as product diversification and margin-enhancing initiatives take effect.

• Continued expansion in renewable energy, PV installations, and high-volume petrol stations.