In Q1 2024, Kraš recorded revenue growth of 18% YoY, an EBITDA increase of 308%, and a net income of EUR 1.45m, an increase of 154% YoY.

Starting off with the revenue, Kraš recorded an increase of 18% YoY, amounting to EUR 43m. Of this, revenue on the domestic market amounted to EUR 26.7m, an increase of 26.4% YoY, while revenue on the international market amounted to EUR 16.4m, an increase of 5.6% YoY. The total volume of sales amounted to 8.96k tonnes, an increase of 10% YoY. Of this, volume sales on the domestic market increased by 8.8% YoY, while on the foreign market, they grew by 11% YoY.

Moving on to operating expenses, they amounted to EUR 42.1m, growing by 15% YoY. This came as a result of higher material expenses (+9% YoY, to EUR 28.9m), which themselves increased due to higher cost of commodities and materials, as well as higher COGS. Employee expenses also grew, by 20% YoY to EUR 8.9m, as a result of wage inflation. Lastly, Kraš also recorded a change in the value of inventories, which is a negative line in the OPEX (and as such it reduces OPEX), and this amounted to EUR 147k, a reduction of 90% YoY.

Due to the faster revenue than OPEX growth, EBITDA amounted to EUR 3.95m, an increase of 30% YoY. This would also imply an EBITDA margin of 9.2%, an increase of 0.9 p.p. YoY. In terms of the net financial result, it was positive at EUR 351k (Q1 2023: EUR -93k), as a result of higher financial income (EUR 419.6k, +354% YoY), which itself came as a result of higher fin. income from investments and loans, while financial expenses decreased (EUR 68.4k, -63% YoY), as a result of lower FX differences.

Because of all of this, net income grew by 154% YoY to EUR 1.45m, implying a net income margin of 3.4%, an increase of 1.82 p.p. YoY.

Kraš key financials (Q1 2024 vs. Q1 2023, EURm)

Source: Kraš, InterCapital Research