Acomo (ACOMO) H1 2024 earnings summary

Executive summary

• H1 2024 sales were €668.2 million, flat year-over-year, with EBITDA at €41.2 million, down 9% from H1 2023, mainly due to extreme cocoa market volatility impacting the organic segment.

• Net profit declined 19% to €17.8 million, with strong performance in spices and nuts offset by losses in organic cocoa.

• Spices & Nuts achieved record results with double-digit EBITDA growth; Edible Seeds and Tea faced mixed conditions.

• G&A expenses rose due to higher labor costs, especially in North America.

• Interim dividend set at €0.40 per share, unchanged from 2023.

Financial highlights

• Gross profit rose 2.4% to €88.8 million, despite flat sales.

• Operating income (EBIT) fell 10% to €32.7 million; financial expenses increased to €8.3 million due to currency borrowing mix.

• Operating cash flow was negative at €9.7 million, down from €54.2 million in H1 2023, following a slight increase in working capital.

• Solvency ratio at 54%, equity per share increased to €13.89, and leverage ratio slightly up due to EBITDA decline.

• Earnings per share were €0.61, down from €0.75 in H1 2023.

Outlook and guidance

• Full-year results remain unpredictable due to ongoing cocoa price volatility, though recent trends are positive.

• Majority of cocoa-related losses in H1 are expected to be offset during 2024, but no guarantees due to market uncertainty.

• Board remains confident in management's ability to navigate global economic and supply chain uncertainties.

• Continued focus on growth in spices, nuts, edible seeds (especially in the U.S.), and food solutions, both organically and via acquisitions.