Wawel (WWL) Q3 2024 earnings summary

Executive summary

• Q3 2024 profit before tax was PLN 17.2 million, down 23% year-over-year, mainly due to higher cost of sales outpacing revenue growth.

• Net revenues for Q3 2024 increased by 1% to PLN 158.6 million compared to Q3 2023.

• Operating profit for Q3 2024 fell by 31% year-over-year to PLN 13.6 million.

• No major events or unusual items impacted the period.

Financial highlights

• Q3 2024 revenues: PLN 158.6 million (up 1% YoY); 9M 2024 revenues: PLN 454.7 million (up 2% YoY).

• Q3 2024 net profit: PLN 13.8 million (down from PLN 17.8 million YoY); 9M 2024 net profit: PLN 41.9 million (down from PLN 43.3 million YoY).

• Q3 2024 EBITDA: PLN 20.6 million (down 23% YoY); EBITDA margin: 13.0% (down from 17.0%).

• Q3 2024 operating profit: PLN 13.6 million (down 31% YoY); EBIT margin: 8.6%.

• Total assets as of Sep 30, 2024: PLN 801.4 million; equity: PLN 694.6 million.

Outlook and guidance

• High cocoa bean prices (up 96% YoY) are expected to continue impacting production costs and gross margin into 2025.

• Price increases for products may stabilize the situation but could negatively affect sales volumes.

• The company has not published a financial forecast for 2024.