Wawel (WWL) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 reached 158.6m PLN, up 1% year-over-year, with net profit at 13.8m PLN, down 23% from Q3 2023 due to higher raw material costs outpacing sales growth.

• Nine-month 2024 revenue totaled 454.7m PLN (+2% y/y), with net profit at 41.9m PLN, a 3% decrease from the prior year.

• The company distributed a dividend of 45.2m PLN (35 PLN/share) in July 2024.

Financial highlights

• Q3 2024 operating profit was 13.6m PLN, down 31% year-over-year; EBIT margin fell to 8.6% from 12.5%.

• EBITDA for Q3 2024 was 20.6m PLN (13.0% margin), down from 26.8m PLN (17.0%) in Q3 2023.

• Cash flow from operations for the first nine months was 81.4m PLN, up from 70.4m PLN a year earlier.

• Cash at period end was 256.0m PLN, down from 290.4m PLN at the start of the year.

Outlook and guidance

• High cocoa prices (up 96% y/y to 5,241 GBP/ton) are expected to continue pressuring gross margins into 2025.

• Price increases have been implemented to offset cost inflation, but there is risk of lower sales volumes.

• No official financial guidance for 2024 has been published.