Sligro Food Group (SLIGR) H1 2025 earnings summary

Executive summary

• Revenue declined 8.5% year-over-year to €1,275 million in H1-2025, mainly due to the discontinuation of tobacco sales and weak market conditions, but revenue excluding tobacco rose €12 million, with a strong Q2 offsetting a weak Q1.

• Net profit improved to €2 million from a €1 million loss in H1-2024, with EPS rising to €0.03.

• Organic net revenue growth (excluding tobacco) was 0.8%, with the Netherlands up 2.4% and Belgium down 7.3%.

• Interim dividend increased to €0.40 per share, reflecting a strong financial position and positive outlook.

• Acquisition of GEPU in June 2025 contributed to consolidated results.

Financial highlights

• Gross profit margin rose to 29.4% (up 0.5%) due to the end of tobacco sales; underlying margin improved in both countries.

• EBITDA margin was 4.5% of revenue, up from 4.0% in H1-2024.

• Operating result (EBIT) increased to €9 million from €6 million year-over-year.

• Free cash flow was a net outflow of €43 million, down €23 million year-over-year due to higher investments and no property sales.

• Cost inflation averaged 3.1%, with operating costs to revenue (excluding tobacco) up 0.3% to 24.9%.

Outlook and guidance

• Market growth expected to remain inflation-driven with little volume improvement; limited volume growth and slight market growth for 2025.

• Revenue growth anticipated in both countries, with Belgium expected to return to growth in H2-2025.

• EBITDA guidance for 2025 set at 5.5%–6.0% of revenue, with positive EBITDA expected in Belgium.

• Medium-term ambition remains to drive EBITDA to 7.5%, with further cost structure reductions planned.

• Plans for significant cost structure reduction to be formalized in autumn.