Mo-BRUK (MBR) Q2 2024 earnings summary

Executive summary

• H1 2024 consolidated revenue increased by 7.2% year-over-year, reaching PLN 120.2m, with over 86% from waste management, despite a half-year downtime at the Karsy incineration plant.

• EBITDA and net profit declined significantly due to the Karsy plant downtime, El-Kajo integration, and higher investment outlays, with net profit at PLN 30.4m, down from PLN 40.6m in H1 2023.

• Volumes processed rose from 116,000 to 150,000 tons, a 25% increase, and major investments, including Karsy plant modernization, have been completed.

• El-Kajo's operational expenses were consolidated, with its positive EBITDA expected to contribute from Q3 2024.

• Significant contracts signed, including a PLN 33m waste removal deal and a PLN 24.5m investment contract.

Financial highlights

• H1 2024 consolidated turnover up 7.2% year-over-year; EBITDA for H1 2024 was PLN 44.3m, down from PLN 54.4m in H1 2023.

• Net profit for H1 2024 was PLN 30.4m, down from PLN 40.6m in H1 2023.

• Operating expenses increased by 22% year-over-year, mainly due to El-Kajo consolidation.

• Q2 2024 core business profitability improved by 20% over Q1 2024.

• RDF segment revenue up nearly 60%, with volume up 16%.

Outlook and guidance

• Profitability is expected to improve in H2 2024 as the effects of Karsy plant modernization and El-Kajo integration become more visible.

• Full operational capacity for all installations anticipated in 2025, with increased profitability and stability in the solidification and stabilization segment.

• Ongoing investments aim to increase production capacity in waste stabilization and synthetic aggregate production.

• New contracts and completed investments are expected to support future revenue growth.

• No significant seasonality expected; business continuity is not at risk.