Saga Furs (SAGCV) H2 2024 earnings summary

Executive summary

• For the period 1.11.2023–31.10.2024, Saga Furs saw a 19% drop in skins brokered, reducing sales value to €343M from €352M year-over-year.

• Group revenue declined 12% to €41M, with operating profit falling to €1.7M from €3.2M.

• Net profit per share decreased to €0.73 from €1.39; the board proposes a €0.71 dividend per A and C share.

• Mink skin prices rose nearly 30%, offsetting some volume decline; China remained the dominant market.

• Major cost reductions included a 5% drop in personnel expenses and a 13% decrease in other operating costs.

Financial highlights

• Value of brokered sales: €343M (down 3% year-over-year); revenue: €41M (down 12%).

• Operating expenses: €43M (down from €46M); operating profit: €1.7M (down from €3.2M).

• Net financial income: €1.7M (down from €2.9M); pre-tax profit: €3.5M (down from €6.1M).

• Net profit: €2.6M (down from €4.9M); EPS: €0.73 (down from €1.39).

• Cash flow from operations: €24.9M; investments: €2.9M; cash at period end: €58.1M.

Outlook and guidance

• Auctions planned for March, June, and September 2025, with 9.25M mink and 700,000 fox/finnraccoon skins expected.

• Sales and revenue will be affected by declining volumes and price changes; result depends on auction outcomes.

• New production management system will increase depreciation, negatively impacting operating profit.