TFF Group (TFF) H1 24/25 earnings summary

Executive summary

• Sales declined 9.1% year-over-year to €240.2m for H1 2024/2025, reflecting lower volumes across all markets amid economic and weather challenges.

• Net income dropped 41.6% to €23.8m, with profitability remaining strong despite the downturn.

• Operating income fell 24.2% to €40.4m, impacted by higher amortization, unfavorable base effects, and negative currency movements.

• All markets and divisions experienced volume declines, with both wine and alcohol segments affected.

• The group completed the acquisition of 51% of PETITRENAUD and BEAUSOLEIL, consolidating their results from May 1, 2024.

Financial highlights

• EBITDA reached €50.2m (20.9% margin), down 18.8% year-over-year; margin declined by 2.5 points.

• Operating income was €40.4m (16.8% of sales), impacted by a 20.4% rise in depreciation and amortization.

• Net financial income was -€10.5m, including a -€4.3m FX loss and -€6.2m net debt cost.

• Equity: €529.7m; available cash: €87.7m; inventories: €441.9m; net debt: €300.7m (up from €266.6m at April 30, 2024).

• EPS: €1.05 (down from €1.81 year-over-year).

Outlook and guidance

• Management anticipates a further sales decline of over 10% and lower operating profitability in H2.

• The year is expected to be a pause in growth, but medium-term optimism remains due to strong production capacity and no need for further investment.

• Second half expected to remain challenging due to ongoing geopolitical and climate headwinds.