Amica (AMC) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was PLN 1,245.6m, down 13% year-over-year, mainly due to weak consumer sentiment and reduced activity in Russia.

• Net loss was PLN 1.2m, a significant improvement from a PLN 4.2m loss a year earlier.

• Operating profit fell to PLN 14.4m from PLN 37.5m year-over-year, reflecting lower sales and margin pressure.

• EBITDA margin decreased to 3.5% from 4.5% year-over-year; gross profit margin improved to 27.2% from 26.3% year-over-year.

• The group maintained a stable financial position, with lower net debt and improved liquidity.

Financial highlights

• Sales in Poland grew 1.6% year-over-year, but all other regions saw double-digit declines, with the largest drop in Russia (East, -24.7%).

• Cash at period end was PLN 85.5m, down from PLN 148.8m a year earlier.

• Net cash from operations improved to -PLN 16.8m from -PLN 59.0m year-over-year.

• Capex totaled PLN 22.9m, focused on R&D, automation, and green energy projects.

• EPS: PLN -0.16 vs PLN -0.60 year-over-year.

Outlook and guidance

• New long-term strategy to be presented in H2 2024, with continued focus on value maximization and ESG.

• Management expects stable financial position and sufficient liquidity for ongoing operations.

• Polish and Eurozone GDP growth expected to accelerate in 2024–2025, but inflation and energy price risks remain.

• Market recovery in Poland is visible, but global demand for household appliances remains subdued.