Anora Group (ANORA) Q2 2024 earnings summary

Executive summary

• Q2 2024 comparable EBITDA rose 16.9% to EUR 15.2m, driven by higher gross margin and cost controls, while net sales declined 3.1% due to industrial segment weakness; wine and spirits segments delivered margin and EBITDA growth.

• Gross margin improved to 42.3% in Q2, reflecting successful price increases and lower raw material costs.

• Net debt reduced to EUR 200.7m from EUR 253.1m, with leverage ratio improving to 2.8x.

• The company continues to focus on profitability, balance sheet strength, and value-enhancing initiatives after a challenging 2023.

• Earnings per share improved to EUR 0.03 in Q2 2024.

Financial highlights

• Q2 2024 net sales: EUR 177.1m (down 3.1% year-over-year); wine up 0.8%, spirits flat, industrial down.

• Comparable EBITDA: EUR 15.2m (up 16.9% year-over-year), margin 8.6%.

• Operating result: EUR 8.4m (vs. EUR 1.6m Q2 2023); result for the period: EUR 1.8m; EPS EUR 0.03.

• Net working capital: EUR -21.1m, or -3% of turnover.

• Cash and cash equivalents at period end: EUR 141.1m.

Outlook and guidance

• 2024 comparable EBITDA expected at EUR 75–85m (2023: EUR 68.2m).

• The company expects continued stabilization in the industrial segment in H2, particularly from contract manufacturing volumes.

• Key market volumes anticipated to be slightly lower in 2024 due to economic headwinds.

• Finnish monopoly sales expected to decline in H2 2024, offset by new grocery channel sales of up to 8% ABV wines.

• Barley prices, a key risk, are forecasted to remain stable for the rest of the year.