Sligro Food Group (SLIGR) H1 2024 earnings summary

Executive summary

• Revenue declined 0.7% year-over-year to €1,393 million in H1-2024, with growth in the Netherlands (+0.5%) offset by a 6.9% drop in Belgium.

• EBITDA stable at €55 million; operating result up €2 million to €6 million.

• Net loss of €1 million versus a €1 million profit in H1-2023, mainly due to higher interest expenses; EPS at -€0.02.

• Free cash flow was -€20 million, down from €19 million in H1-2023, mainly due to higher working capital and investments.

• Interim dividend of €0.30 per share maintained, reflecting a strong financial position and policy.

Financial highlights

• Gross profit margin declined 0.2pp to 26.3%, mainly due to increased tobacco sales share in the Netherlands.

• Operating costs as a percentage of revenue fell 0.3pp to 22.4%, despite 5.5% cost inflation.

• Depreciation and amortisation expenses fell by €2 million, with lower software amortisation offset by higher fleet depreciation.

• Interest expenses increased by €2 million due to higher debt and variable rates.

• EBITDA margin: 4.0% (H1-2023: 3.9%).

Outlook and guidance

• Market recovery expected to remain marginal in H2-2024; food inflation to stay at 2-3%.

• EBITDA for 2024 expected to be on par with 2023; target to reach 7.5% EBITDA margin remains, but timing depends on market recovery.

• Tobacco revenue share to fall to 0% by January 2025 as contracts are phased out; temporary revenue boost expected in H2 2024 from contract fulfillment.

• Focus remains on cost savings, customer retention, and operational stability to support future recovery.