Erbud (ERB) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was PLN 1,333.5m, down 16% year-over-year; net profit reached PLN 0.6m, reversing a PLN 4.7m loss in H1 2023.

• Operating profit for H1 2024 was PLN 11.7m, up 15% year-over-year; EBITDA increased to PLN 32.3m from PLN 28.2m.

• Cash and cash equivalents decreased to PLN 179.0m from PLN 263.1m at year-end 2023.

• The Group completed the sale of PV Invest and SPV Czerwona Woda, and acquired CKTIS SA and a 63 MW photovoltaic project.

Financial highlights

• H1 2024 revenue: PLN 1,333.5m (down from PLN 1,582.2m in H1 2023); H1 2024 net profit: PLN 0.6m (vs. loss of PLN 4.7m in H1 2023).

• H1 2024 EBITDA: PLN 32.3m (up from PLN 28.2m); EBIT margin stable at 1%.

• Cash flow from operations was negative at PLN -84.1m for H1 2024; net cash outflow mainly due to working capital changes and investment activities.

• Basic EPS for H1 2024: PLN -0.47 (improved from PLN -0.83 in H1 2023).

• Total assets at 30 June 2024: PLN 1,973.5m; equity: PLN 646.4m.

Outlook and guidance

• Management expects continued market volatility due to material and labor price increases and FX fluctuations, but notes a more stable environment compared to prior years.

• Ongoing diversification by geography and business segment to mitigate risks.