In Q1 2023, Kraš recorded revenue growth of 10.5% YoY, an EBITDA decrease of 19.8%, and a net income of EUR 571.6k, a 66.6% decrease YoY. Furthermore, Kraš proposed EUR 1.35 DPS for the 2023 dividend payment, which at the share price before the announcement implied a DY of 1.69%. The ex-date is set for 12 June 2023.
Starting off with the revenue, Kraš’s sales revenue amounted to EUR 36.6m, an increase of 10.5% YoY. Of this, sales on the domestic market amounted to EUR 20.6m, an increase of 13.7% YoY, while the sales revenue in the international markets amounted to EUR 15.5m, an increase of 7% YoY. Kraš also notes that they managed to sell 8.138 tonnes of products, which is 6.1% lower YoY. Of this, the quantity of products sold on the domestic market dropped by 4.8% YoY, while on the international markets, it decreased by 7.5% YoY.
Taken together, this would mean that the increase in 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 14.7% YoY and amounted to EUR 36.7m. Of these, the material expenses increased the most, growing by 25.6%, and amounting to EUR 26.6m, while staff expenses decreased by 7.8% YoY, and amounted to EUR 7.5m. 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 3.04m, a decrease of 19.8% YoY, driven by the faster OPEX than revenue growth. This would also imply an EBITDA margin of 9.2%, a decrease of 2.3 p.p. YoY.
Moving on to the net financial result, it amounted to EUR -93.2k, (Q1 2022: EUR 202.6k), mainly driven by lower financial revenue due to lower FX gains, while the financial expenses remained roughly the same. Taken together, this led to an EBT of EUR 841.2k, a 59.4% reduction YoY. Finally, the net income of the Company amounted to EUR 571.6k, a 66.6% reduction YoY. This would also mean that the net profit margin amounted to 1.7%, a reduction of 3.4 p.p. YoY.
Kraš key financials (Q1 2023 vs. Q1 2022, EUR ‘000)
Source: Kraš, InterCapital Research
Furthermore, Kraš also published a GSM call, in which they detailed the dividend proposal for 2023. According to the call, Kraš proposed EUR 1.35 DPS for the 2023 dividend payment, which at the current share price would imply a DY of 1.69%. The ex-date for the dividend payment is set for 12 June 2023, while the payment date is set for 10 July 2023. Of course, the dividend proposal is subject to approval at the Company’s GSM, which will be held on 7 June 2023.
