Sligro Food Group (SLIGR) H2 2025 earnings summary

Executive summary

• Revenue reached €2,668 million, down 7.7% year-over-year, mainly due to the cessation of tobacco sales in the Netherlands as of January 2025.

• Net profit increased to €30 million from €24 million, with EPS rising to €0.72 per share.

• Gross profit margin improved to 29.5% (from 26.5%), driven by better procurement, product mix, and the end of tobacco sales.

• GEPU acquisition in June 2025 contributed €6 million in revenue and strengthened the position in the Utrecht region.

• ERP transition and digital upgrades progressed, with investments in digital infrastructure and AI pilots launched.

Financial highlights

• Revenue: €2,668 million (down 7.7% year-over-year); Netherlands +2.6% (excluding tobacco), Belgium -3.2%.

• EBITDA: €152 million (5.7% margin), EBIT: €54 million (2.0% margin), up €11 million year-over-year.

• Net profit grew to €30 million from €24 million; free cash flow improved to €80 million from €29 million.

• Dividend proposed at €0.50 per share, with a payout ratio of 70%.

• Net cash flow from operating activities improved to €198 million, supported by working capital improvements.

Outlook and guidance

• Market growth expected at 3–4% in the Netherlands and 2–3% in Belgium for 2026, driven by slight volume growth and price inflation.

• Multi-year plan for 2026-2030 focuses on profitability through customer mix optimization, revenue growth, and cost reductions.

• Revenue expected to increase, outpacing the market through customer acquisition and expanded sales to existing customers.

• Profitability improvement targeted via gross margin optimisation and cost efficiency.

• No concrete results forecast for 2026.