Sligro Food Group (SLIGR) H2 2024 earnings summary

Executive summary

• Revenue increased 1.1% to €2,890 million in 2024, with growth in the Netherlands (+2.6%) offsetting a 7.8% decline in Belgium; organic growth was also 1.1%.

• Net profit rose to €24 million from €6 million in 2023, with EPS up to €0.54; EBIT increased by €28 million to €43 million.

• Market leadership maintained in the Netherlands, with a slight H1 market share loss largely regained in H2; Belgium saw revenue and market share declines but is stabilizing post-integration.

• Integration and optimization of Belgian and Dutch operations completed, resulting in significant overhead reductions and improved efficiency.

• Tobacco sales increased turnover by €60 million in the Netherlands but were zero-margin and ceased by year-end 2024, impacting reported revenue but not profit.

Financial highlights

• Gross profit margin was 26.5%, down 0.2 percentage points due to tobacco sales; adjusted margin (excluding tobacco) was 27.0% and improved year-over-year.

• EBITDA reached €138 million; EBIT was €43 million; free cash flow was €29–34 million, supporting dividend payments and debt reduction.

• Operating costs to revenue ratio improved by 0.4 percentage points to 21.8%, with significant cost reductions offsetting inflation.

• Book profit from real estate sales contributed €3 million in 2024, down from €5 million in 2023.

• Dividend of €0.40 per share proposed for 2024, up from €0.30 in 2023, with a payout ratio of 74%.

Outlook and guidance

• Limited volume growth and 2–3% inflation expected in 2025, leading to 3–4% market growth; revenue (excluding tobacco) anticipated to increase.

• Ambition to outperform market growth in both countries, focusing on customer acquisition, volume expansion, and cost control.

• EBITDA margin target of 7.5% expected to be reached in about two years, with 2024 normalized EBITDA at 5.2%.

• No specific 2025 result forecast provided; cost inflation is now more balanced with sales price inflation.

• Early 2025 shows limited growth in the Netherlands and contraction in Belgium.