Wittchen (WTN) Q2 2024 earnings summary

Executive summary

• Revenue in 2Q24 reached 112.8m PLN, up 2.2% year-over-year, while H1 2024 revenue was 205.8m PLN, nearly flat year-over-year.

• Net profit for H1 2024 was 16.7m PLN, down from 23.2m PLN in H1 2023, with 2Q24 net profit at 11.8m PLN, down 10.5% year-over-year.

• EBITDA increased 6.7% year-over-year to 24.4m PLN in 2Q24, with a margin of 21.7%.

• Expansion continued in Central Europe, with 5 new foreign stores opened in the last year and further openings planned.

• Dividend payout of 3.57 PLN per share (totaling 65.8m PLN) was approved, with payment scheduled for August 2024.

Financial highlights

• Gross margin on sales was 62.1% in 2Q24 and 62.9% in H1 2024, both slightly down year-over-year due to price pressure and higher costs.

• Operating profit for H1 2024 was 23.4m PLN, down from 28.2m PLN year-over-year.

• Cash flow from operations in H1 2024 was 35m PLN, up from 26.1m PLN in H1 2023.

• SG&A costs decreased by 1.6% year-over-year, now 46.9% of sales.

• Cash and equivalents at period end were 30.6m PLN, up from 22.8m PLN at year-end 2023.

Outlook and guidance

• Plans for 2H24 include maintaining sales and profitability growth, further international expansion, and logistics cost optimization.

• Focus remains on improving sales network efficiency, expanding product assortment, and increasing marketplace presence.

• Ongoing investment in logistics, with a new warehouse hall project and expansion of the Palmiry logistics center.