Miraculum reported its 1Q24 results with EBITDA of PLN 1.05m (+27% y/y) above our estimate of PLN 0.57m, driven mainly by improvement of gross margin by 8.3pp y/y to 38.8%. Below please find key highlights:
• Revenues came in at PLN 12.8m (-12% y/y, slightly above monthly data of PLN 12.7m). Revenues in ‘Shaving cosmetics’ increased by 14% y/y to PLN 2.6m, while ‘Face care’ almost double y/y to PLN 1.8m. Revenues in ‘Makeup cosmetics’ and ‘Body care’ declined y/y.
• Gross profit reached PLN 5.0m (+12% y/y), implying gross margin of 38.8% (+8.3pp y/y). The company reported y/y improvement of gross margin in all its segments, with major growth reported in ‘Makeup cosmetics’ (to 45.2%). Gross margin in “Perfumes’ remains at solid level of 42%.
• EBITDA came in at PLN 1.05m (+27% y/y, vs. our forecast PLN 0.57m). SG&A costs increased by 7% y/y to PLN 4.2m at that time (6% above our expectations). EBIT amounted to PLN 0.76m (vs. our forecast of PLN 0.28m).
• Net profit amounted to PLN 12k (vs. our forecast loss of PLN 66k). Net financial costs amounted to PLN 503k.
• Operating cash flow amounted to PLN 12k in 1Q24 vs. PLN 188k in 1Q23. The company had inventory of PLN 13.7m as of end-1Q24 (+3% y/y). Net debt amounted to PLN 8.8m as of end-1Q24 (vs. PLN 19.2m as of end4Q23 following issue of 6m shares and conversion of debt to shares).
Opinion: Positive, given improvement of gross margin by over 8pp y/y to nearly 39% (improvement reported in all segments), resulting in a 27% y/y growth in EBITDA despite y/y deterioration of sales and 7% y/y growth in SG&A costs. Additionally, we point that after conversion of debt into shares (6m shares issued at PLN 1.80/share), the company has reduced its net debt, resulting in decrease of ND/EBITDA ratio of 4.7x as of end of 1Q24
