Gr. Sarantis S.A.

Reported H1 net sales were €308.2 million, up 1.3% year over year. Underlying gross profit margin was flat at 38.6%; underlying EBITDA was €36.7 million, down 2%, with EBITDA margin at 11.9%; underlying net income was €27.7 million, down 5%; and underlying EPS was €0.44, versus €0.46 last year. The company also noted underlying EBITDA of €48.5 million and a 15.7% margin earlier in the call, tied to a different presentation of the underlying/reported bridge, and said the difference to reported results reflected an €800 thousand one-off from the sale of the old Polpak factory. Category performance included beauty/skincare/sun care sales down 2% to €54 million, personal care down 2.7% to €7 million EBIT, homecare solutions up 3% to €95 million, private label sales flat at €35.2 million, and strategic partnerships sales up 4.9%. By geography, Greece grew 1.9% to €81.6 million, Poland rose 4.9% to €94.3 million, Romania fell almost 5% to €44 million, Czechoslovakia and Hungary rose 11.5% to almost €35 million, West Balkans fell 4% to €18 million, and Ukraine fell almost 10% to €9.5 million. For the balance sheet, net debt was €29.6 million at June 30 versus €32.8 million a year earlier, and management said net debt had improved to €19 million as of the call, with year-end expected back to net cash. Full-year CapEx was raised to €22 million from €20 million, with €18 million already deployed. Management did not reaffirm numerical full-year guidance, saying the environment is too uncertain, though it reiterated that the prior market view had been €620 million sales and €97 million EBITDA.

The CEO emphasized strategic continuity: focus on core categories, key countries, digital transformation, and commercial execution. He highlighted that most SAP and manufacturing projects are now implemented, with Poland as the last major country for next year, and said the company is still investing in people and production capabilities. Tone-wise, he was cautiously optimistic but clearly more conservative on the near-term outlook because of Middle East cost pressure, Ukraine, Romania, and the U.S. export phasing.

The CFO walked through the financial bridge and said the main reported-versus-underlying difference was an €800 thousand one-off tied to the Polpak factory sale. He pointed to flat gross margin at 38.6%, underlying EBITDA margin at 11.9%, and underlying net income of €27.7 million, while also noting financial expenses were hurt by more than €1 million from the złoty devaluation despite prior loan prepayments. On cash and capital allocation, he said net debt was €29.6 million at June 30, improved to €19 million at the time of the call, working capital improved by 2 days, and the company plans a €7.5 million loan prepayment by month-end plus another loan prepayment in Q4. He also said committed loan facilities stand at €120 million and CapEx for 2026 is now expected to be €22 million, with €18 million already spent.

Analysts pressed management on whether the company can still hit the earlier full-year targets of €620 million sales and €97 million EBITDA. Management declined to reaffirm a precise number, saying the environment is too uncertain and that an update will come later in the year, but it did say second-half top-line growth should be higher than the 1.3% achieved in H1. Questions also focused on acquisitions and the €120 million financing facility; management said the strategy remains focused on Eastern Europe and existing categories, with no specific acquisition targets to disclose, although it noted that target processes now look more concrete than in prior years. On margin pressure, management said Q3 will still face cost pressure, while pricing is expected to start landing mainly in late September and more in Q4.