Rokiskio Suris (RSU1L) H1 2024 earnings summary

Executive summary

• Sales revenue for H1 2024 reached €174.8 million, up 18% year-over-year, with strong export growth, especially to Europe, and a focus on value-added cheese products.

• Net profit for H1 2024 was €6.43 million, a 258% increase compared to €1.79 million in H1 2023, driven by higher cheese prices and improved product mix.

• EBITDA more than doubled to €13.7 million, with an EBITDA margin of 7.84% versus 4.47% in H1 2023.

• The company completed a 10% share buyback and cancelled treasury shares, reducing share capital and enabling a strategic investor exit.

• Dividends of €0.15 per share were paid, totaling €5.25 million.

Financial highlights

• Gross profit rose 53% to €20.2 million; gross margin improved to 11.58% from 8.93% year-over-year.

• EBIT increased to €8.48 million (H1 2023: €1.76 million); EBIT margin rose to 4.85%.

• Operating profit reached €7.49 million, up from €1.17 million in H1 2023.

• Return on assets (ROA) was 3.49% (H1 2023: 0.79%), and return on equity (ROE) was 4.05% (H1 2023: 1.20%).

• Net earnings per share increased to €0.20 from €0.05 year-over-year.

Outlook and guidance

• The company aims to expand Grand cheese sales in EU and US retail and foodservice markets, maintain domestic market share, and strengthen sales in the Baltics.

• Investment focus remains on production efficiency, sustainability, and digital process improvements, with €9 million invested in H1 2024.

• EC forecasts a 4-6% increase in milk purchase prices in H2 2024; output prices are expected to stabilize.