Zentiva (SCD) Q2 2024 earnings summary

Executive summary

• Net turnover rose 22.3% year-over-year to RON 551.3 million in H1 2024, driven by a 24% increase in sales of goods.

• Net profit nearly doubled to RON 143 million, up 97.7% from H1 2023, mainly due to higher sales and improved operating margin.

• Domestic sales surged 52% while external sales declined 5%, shifting the sales mix toward the local market.

• Investments of RON 20.1 million were made in new and modernized production equipment.

Financial highlights

• Operating profit increased 121.8% to RON 144.6 million compared to H1 2023.

• Gross profit reached RON 163.1 million, up 91.5% year-over-year.

• Cash and cash equivalents rose 27.8% to RON 34.9 million as of June 30, 2024.

• Shareholders' equity increased by RON 142.6 million (+12%) to RON 1,333.8 million.

• Market capitalization at June 30, 2024 was RON 2.41 billion, with a share price of RON 3.46.

Outlook and guidance

• Priorities for 2024 include maintaining profitability amid rising costs, expanding production capacity, and launching new products.

• Focus remains on increasing local market sales and diversifying the product portfolio.

• Management expects continued positive cash flows and profitability from direct distribution and local production.