Mister Spex (MRX) H1 2024 earnings summary

Executive summary

• Net revenue for H1 2024 reached €119m, up 1% year-over-year, with Germany driving growth and international sales declining 7%.

• Profitability remains a challenge, with adjusted EBITDA at -€0.8m and net loss widening to €17.3m.

• A restructuring and transformation program, "SpexFocus," is underway to deliver over €20m in EBITDA improvements by 2025/2026.

• CEO Dirk Graber stepped down effective July 31, 2024; CFO Stephan Schulz-Gohritz became interim CEO.

• Rebranding efforts target premium positioning and customers aged 40-60 with higher optical needs.

Financial highlights

• Adjusted EBITDA for H1 2024 was -€0.8m, with Q2 contributing €0.8m.

• Gross profit margin in Q2 2024 was 48.7%, while H1 2024 margin was 50.1%, down 68bps year-over-year.

• Net loss: €17.3m (H1 2023: €16.5m); EPS: €-0.51.

• Cash and cash equivalents: €99.6m as of June 30, 2024 (down €11.1m from year-end 2023).

• Marketing expenses declined by 7% in Q2, while other operating expenses rose due to consultancy and rebranding costs.

Outlook and guidance

• Full-year 2024 guidance adjusted: net revenue expected at €210-230m and adjusted EBITDA margin between -4% and +1%.

• Cash and cash equivalents at year-end projected to be ~€80m.

• EBIT will become the key financial performance metric from 2025.

• No further store openings planned in 2024; focus on increasing average order value and prescription glasses.

• July trading continued Q2 trends, with some positive impact from sunglasses in August.