Virsi-A (VIRSI) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 14.1% year-over-year to €185.3 million, with growth in all core segments and network expansion, investments, and strategic progress highlighted.

• Net profit for H1 2024 was €2.0 million, down from €3.2 million in H1 2023, mainly due to lower energy segment profits and higher labor costs.

• EBITDA reached €6.3 million, a 16.9% decrease year-over-year, impacted by development-stage investments, energy segment performance, and increased operating expenses.

• Four new sales points were opened, expanding the network to 79 sales points, including 76 filling stations, and strategic investments focused on network expansion, EV charging, and biomethane facility development.

• Employee value creation advanced, with a top-4 employer ranking in Latvia and entry into the Lithuanian market.

Financial highlights

• Gross profit increased by 6.6% (EUR 1.2 million) year-over-year for the first six months of 2024, reaching €19.1 million.

• Fuel turnover grew 12.6% to €144.8 million; convenience store turnover up 15.2% to €26.2 million; energy turnover up 30.8% to €13.1 million.

• Net profit margin for H1 2024 was 1.1%, compared to 1.9% in H1 2023.

• Investments totaled over €10 million in H1 2024, nearly doubling year-over-year, mainly in network expansion and modernization.

• Cash and cash equivalents at period end were €5.3 million.

Outlook and guidance

• Future growth expected as new stations and projects come online, with plans to open 9 new sales points in Latvia and the first filling station in Lithuania in 2024.

• Continued focus on expanding electricity customer portfolio and preparing for biomethane facility launch in 2025.

• Long-term investments aimed at increasing market share, profitability, and business sustainability.

• No immediate plans for further equity or bond issues; bank financing remains preferred due to favorable terms.

• Focus on scaling operations in Lithuania, with expansion scenarios including building, buying, or renting stations.