In H1 2023, Kraš recorded revenue growth of 12.2% YoY, a slight EBITDA decrease of 1%, and a net income of EUR 3m, a 15.3% decrease YoY.
Starting off with the revenue, Kraš’s sales revenue amounted to EUR 80m, an increase of 12.2% YoY. Of this, sales on the domestic market amounted to EUR 44.2m, an increase of 17.1% YoY, while the sales revenue in the international markets amounted to EUR 33.3m, an increase of 6.9% YoY. Kraš’s sales revenue came as a result of higher prices of products, which is in line with the trends in the industry, and of course, driven by high inflation rates.
In terms of op. expenses, they increased by 12.9% YoY and amounted to EUR 76.2m. Of these, the material expenses increased the most, growing by 12.6%, and amounting to EUR 54m, while staff expenses decreased by 9% YoY, and amounted to EUR 15.4m. Kraš further notes that the expense growth was primarily driven by high commodity prices, packaging, energy, and other costs, all of which further influenced profitability development.
Kraš further noted that they continue to improve the operational processes, optimize internal resources, and continually work on mitigating cost increases across all segments. Despite this, the EBITDA amounted to EUR 8.1m, a slight decrease of 1% YoY, driven by the faster OPEX than revenue growth. This would also imply an EBITDA margin of 10.2% in H1, a decrease of 1 p.p. YoY. However, we note that Kraš improved profitability-wise during Q2, offsetting lower profitability during Q1. On Q2 basis, EBITDA margin improved from 11.1% to 12%. Finally, the company also emphasized that the announced investment cycle in modernization and automatization of production facilities continues according to the plan.
Moving on to the net financial result, it amounted to EUR -53k, (H1 2022: EUR 482k), mainly driven by lower financial revenue from lower FX gains, while the financial expenses remained roughly the same. Taken together, this led to an EBT of EUR 3.8k, a 12.3% reduction YoY. Finally, the net income of the Company amounted to EUR 3k, a 15.3% YoY decrease. This implies a net profit margin of 3.9%, a 1.3 p.p. YoY decrease.
Kraš key financials (H1 2023 vs. H1 2022, EUR ‘000)
Source: Kraš, InterCapital Research