Valamar Riviera (RIVP) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024 with operating revenues up 12% to EUR 417.0 million and adjusted EBITDA up 10.3% to EUR 120.7 million, driven by premium segment performance and strategic investments.

• Launched a new business development strategy and brand architecture, targeting EUR 450 million in investments by 2026 and aiming for double-digit annual growth.

• Maintained leadership in ESG, receiving a silver EcoVadis rating and multiple sustainability awards, while being named Croatia's most desirable tourism employer for the eighth consecutive year.

• All destinations performed well, with Dubrovnik fully recovering to pre-pandemic levels, and significant investments in portfolio quality, digitalization, and employee development.

Financial highlights

• Total revenues reached EUR 420.3 million, up 12.0% year-over-year; sales revenues rose 12.5% to EUR 411.3 million.

• Adjusted EBITDA increased 10.3% to EUR 120.7 million; adjusted EBITDA margin slightly decreased by 0.5pp to 28.9%.

• Net profit was EUR 32.8 million, down 2.5% year-over-year, with EBT up 10.6% to EUR 37.0 million.

• Operating costs rose 16.3% to EUR 291.2 million, mainly due to higher staff costs (+15.9%) and material costs (+8.4%).

• Net debt increased 26.9% to EUR 276.3 million; net debt/Adj. EBITDA ratio rose from 2.0 to 2.3.

• Dividend of EUR 0.22 per share (4.7% yield) paid in May 2024, totaling EUR 27 million.

Outlook and guidance

• Reaffirmed 2026 targets: EUR 500 million revenue, EUR 150 million EBITDA, and 4% dividend yield, with 50% of revenue outside peak season and two-thirds from direct sales.

• Plans EUR 161.2 million in investments for 2024/25, focusing on premium segment expansion, digitalization, and sustainability.

• Expects net debt/Adj. EBITDA to return to baseline in the medium term.