Yahoo Finance

• Turnover Growth: 9% increase, slightly above expectations.

• EBITDA: EUR 125.2 million, impacted by EUR 2 million profit from real estate sale and EUR 9 million negative in the Liquor segment.

• Segment Growth: All segments grew between 10% and 24%, except Liquors.

• Beauty Revenue Increase: USD 80 million.

• Food Revenue Increase: USD 65 million.

• Personal Care Revenue Increase: USD 40 million.

• Acquisitive Growth: EUR 12 million turnover increase in Personal Care from Tastemakers acquisition.

• Gross Profit Margin: 15.0%, down from 15.5% last year.

• Operating Expenses: Increased by EUR 10 million to EUR 243 million.

• Net Profit: EUR 47.2 million, with EUR 39.9 million attributable to company owners.

• Earnings Per Share: EUR 0.47, up from EUR 0.40 last year.

• Net Debt: Increased to EUR 380.8 million.

• Net Debt to EBITDA Leverage: 3.0.

• Interest Coverage Ratio: 4.1%.

• Inventory Increase: EUR 74 million, mainly in Beauty and Personal Care segments.

• Inventory Days: Increased from 89 to 96 days in 2024.

• Solvency: 26.6%.

• Warning! GuruFocus has detected 2 Warning Signs with LTS:0A90.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• B&S Group SA (LTS:0A90) reported a turnover growth of 9%, slightly above expectations.

• All segments, except for liquors, delivered growth between 10% and 24%, with strong performances in beauty, food, and personal care.

• The company is focusing on building autonomous and accountable segments to maximize value creation.

• B&S Group SA (LTS:0A90) is investing in digitization to strengthen relationships with clients and suppliers, enhancing operational excellence.

• The company has implemented HR, logistical, and sustainability KPIs to ensure staff performance and business alignment.

Negative Points

• The Liquor segment faced challenges due to geopolitical tensions, resulting in a EUR9 million one-off related to inventory.

• Gross profit margins decreased from 15.5% to 15.0%, impacted by provisions on inventory and one-off cancellation fees in the Liquor segment.

• Operating expenses increased by approximately EUR10 million, driven by global inflation and a tight labor market.

• Net debt increased to EUR380.8 million, with a net debt to EBITDA leverage ratio of 3.0, raising concerns about financial stability.

• The Travel Retail segment has not yet returned to pre-2019 levels, with revenue still EUR10 million below and EBITDA significantly lower.

Q & A Highlights

Q: Can you explain the adjustments made between reported EBITDA and adjusted EBITDA, particularly regarding the interest coverage ratio? A: The reported ratios are based on figures in the financial statements and the banking governance report. Adjustments include full-year figures for acquisitions and some one-offs. The interest coverage ratio is set at 4.0 throughout the year, differing from the leverage ratio, which changes due to inventory positions for peak seasons.