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.

• Net profit declined 19% to €17.8 million, mainly due to volatile cocoa markets impacting Organic Ingredients and Edible Seeds.

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

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

• Acquisition agreement for Caldic's nuts and dried fruits business in the Nordics; new CFO and Tradin Organic CEO appointments announced.

Financial highlights

• Gross profit rose 2% to €88.8 million, despite flat sales.

• EBITDA declined 9% year-over-year to €41.2 million, mainly due to losses in the organic cocoa business.

• Operating income (EBIT) fell 10% to €32.7 million; net profit was €17.8 million, down 19% year-over-year.

• Operating cash flow was negative at €9.7 million, down from €54.2 million in H1 2023.

• Working capital increased moderately after prior reductions, mainly due to inventory management.

Outlook and guidance

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

• Production capacity expansion in Food Solutions planned, with new facility to start operations in Q1 2025.

• Continued focus on growth in Spices & Nuts, Food Solutions, and edible seeds, both organically and via acquisitions.

• 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 ongoing global economic and supply chain uncertainties.