Forus (FORUS) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales and gross profit in 2Q24, with consolidated revenue reaching CLP 110,509 million, up 26.3% year-over-year, and EBITDA of CLP 23,593 million, up 25.5% year-over-year.

• Net income increased 23.1% year-over-year to CLP 11,681 million, with a net margin of 10.6%.

• Growth was driven by double-digit increases in all markets, strong DTC and digital channel performance, and a recovery in the wholesale segment.

• DTC channel represented 84% of total sales, with digital sales growing 35.0% year-over-year and accounting for 32% of DTC and 27% of total revenues.

• Wholesale revenues recovered after four quarters of decline.

Financial highlights

• Gross profit reached CLP 60,238 million (+22.2% year-over-year), with a gross margin of 54.5% (down 183 basis points year-over-year).

• EBIT grew 29.8% to CLP 17,069 million; EBITDA margin was 21.3% (down 15 bps year-over-year).

• SG&A expenses increased by 19.5% to CLP 43,168 million.

• For the first semester, revenues were CLP 193,916 million (+17.8% year-over-year), net income CLP 17,005 million (+9.2% year-over-year), and EBITDA CLP 36,251 million (+11.2% year-over-year).

• Net income increased 22.1% year-over-year to CLP 11,631 million.

Outlook and guidance

• Maintains a healthy balance sheet with -0.2x Net Debt/UDM EBITDA and a credit rating upgraded to AA/Stable by ICR in April.

• Dividend policy set at 40% of 2024 net income, with flexibility for interim distributions.

• Forward-looking statements highlight expectations for continued business development, project execution, and liquidity management, but caution about risks and uncertainties.