Mo-BRUK (MBR) Q3 2024 earnings summary

Executive summary

• The company operates in incineration, solidification/stabilization, and RDF production, focusing on circular, zero-waste models and energy generation, with 8 plants processing hazardous and non-hazardous waste.

• Major modernization of the Karsy incineration plant increased capacity and efficiency, including an ORC unit for electricity generation, completed ahead of schedule.

• The El-Kajo acquisition significantly expanded waste processing and hazardous waste capacity, driving volume growth and productivity.

• Consolidated sales revenue rose 18% year-over-year to PLN 200.2m for the first nine months of 2024, with over 90% from waste management.

• Net profit declined 10.6% year-over-year to PLN 55.0m, reflecting higher operating costs from acquisitions.

Financial highlights

• 1-3Q 2024 revenues: PLN 267.2m, down 9% year-over-year; Q3 2024 revenue exceeded PLN 200m, with strong contributions from fuel stations.

• EBITDA for 1-3Q 2024: PLN 130.6m, down 2.6% year-over-year; Q3 EBITDA margin at 49.3%, returning to target levels.

• Net profit for 1-3Q 2024: PLN 61.5m, net profit margin 23%.

• Net debt increased to PLN 87.4m, with net debt/EBITDA at 0.8x, reflecting investment and acquisition activity.

• Dividend of PLN 46.3m paid out at the end of October.

Outlook and guidance

• Q4 is expected to deliver even better results than Q3, with full capacity utilization at the modernized Karsy incineration plant.

• Ongoing modernization at Niecew and Karsy RDF will further increase capacity, with completions expected by early 2025.

• Management anticipates continued growth in all segments, supported by regulatory changes and market demand.

• No forecasts are published, but management expects to maintain or improve profitability.