Orsero (ORS) H1 2024 earnings summary

Executive summary

• H1 2024 results aligned with expectations, with profitability supported by a strong Q2 in Distribution and strategic investments, despite a generally weak fruit and vegetable market and lower inflationary pressure.

• Distribution now accounts for close to 80% of total EBITDA, reflecting a strategic shift from shipping, which previously dominated earnings.

• Adjusted EBITDA margin was 5.5%, with improved product mix and exotic lines supporting performance.

• The company is focused on resilience and growth, with no significant underperforming markets and continued pursuit of strategic opportunities.

• Solid financial and capital structure supports upcoming strategic growth investments.

Financial highlights

• Net sales for H1 2024 were €744.1 million, down 2.5% year-over-year, mainly due to lower banana volumes and normalized freight rates.

• Adjusted EBITDA was €40.9 million (margin 5.5%), down 30.9% year-over-year.

• EBIT stood at €24.2 million, down from €42.8 million in H1 2023; adjusted net profit was €16.0 million, compared to €33.4 million last year.

• Net profit was €15.1 million, with a tax rate of 21.1%.

• Net financial position at the end of H1 2024 was approximately €130 million, stable year-over-year.

Outlook and guidance

• Management expects to recover lost banana volumes with other products and sees continued growth opportunities, focusing on efficient logistics amid evolving geopolitical conditions.

• No major changes anticipated in freight rates for the remainder of the year; slight increases possible in 2025.

• Capex in line with plan, supporting distribution expansion and ESG strategy, with major investments in new and upgraded warehouses.

• Second half is expected to maintain a positive cash flow profile, with higher planned investments.

• Euribor expected to decrease, but H1 2024 saw higher average interest rates than H1 2023, partially offset by hedging.