Wawel (WWL) Q2 2024 earnings summary

Executive summary

• Wawel S.A. reported financial results for the first half of 2024, covering the period from January 1 to June 30, 2024, with comparative data for the same period in 2023 and as of December 31, 2023.

• The company operates in the production of cocoa, chocolate, and confectionery products, with a significant portion of sales in the domestic market and a notable export segment.

• The business is characterized by seasonality, with higher sales and profits typically in the first and fourth quarters due to the product mix.

Financial highlights

• Revenue for H1 2024 reached PLN 296.1m, up 3% year-over-year from PLN 287.5m in H1 2023.

• Net profit for H1 2024 was PLN 28.2m, up 11% from PLN 25.4m in H1 2023.

• Operating profit for H1 2024 was PLN 28.3m, compared to PLN 25.8m in H1 2023.

• Cash and cash equivalents at June 30, 2024, stood at PLN 290.4m, up from PLN 215.4m a year earlier.

• Dividend of PLN 45.2m (PLN 35 per share) was declared and paid in July 2024.

Outlook and guidance

• Management expects to meet the 2024 plan, with H1 2024 results representing 47% of the annual forecast, in line with typical seasonality.

• No significant risks to achieving the full-year plan are identified, given stronger performance expected in H2.