Arterra Bioscience (ARBS) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, increased 41% year-over-year to €2.3 million, driven by strong sales of cosmetic raw materials, especially in Europe, the USA, and a recovery in China.

• Net profit for the period was €517,261, more than doubling from €248,610 in the prior year period, representing 22.3% of production value.

• EBITDA rose 33% to €0.5 million, with an EBITDA margin of 21.0% versus 17.3% in H1 2023.

• Operating cash flow remained robust at €692,472, with a net decrease in cash of €258,391 after dividend payments and investments.

• Management expects continued growth in sales, with new joint ventures (e.g., Longevity Bioscience S.r.l.) targeting exosome development, potentially impacting results from late 2024 or early 2025.

Financial highlights

• Total assets as of June 30, 2024, were €12.54 million, slightly down from €12.55 million at December 31, 2023.

• Equity stood at €10.60 million, reflecting dividend distribution and profit retention.

• Dividends of €665,849 were paid during the period.

• Net financial position showed €5.6 million in cash, stable versus €5.7 million at year-end 2023.

• EBIT reached €327 thousand (EBIT margin 14.1%), up from 4.9% in H1 2023.

Outlook and guidance

• Sales growth in early H2 2024 continues the positive trend, supporting confidence in meeting full-year targets.

• Management expects first revenue contributions from the new joint venture in 2025.