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Investing.com -- Dino Polska SA (WA:DNP)shares fell more than 7% on Friday after the supermarket chain posted weaker cash flow and higher costs, even as first-half profit and revenue rose.
Revenue for the six months ended June 30 increased 14.8% year over year to PLN 15.98 billion, up from PLN 13.91 billion a year earlier.
Net profit rose 10.2% to PLN 708.96 million from PLN 643.35 million, while operating profit gained 15% to PLN 941.81 million.
In the second quarter, revenue advanced 19% to PLN 8.62 billion, and net profit grew 14.2% to PLN 397.58 million.
EBITDA for the half-year climbed 16.8% to PLN 1.18 billion, with a margin of 7.40% compared with 7.28% a year earlier.
In the second quarter, EBITDA increased 24.9% to PLN 650.5 million, with the margin improving to 7.54% from 7.19%.
Like-for-like sales rose 4.8% in the first half and 8.8% in the second quarter. The company said the shift of the Easter holiday into the second quarter supported quarterly sales growth. Fresh products accounted for 41.4% of sales in the first half.
The chain opened 147 new stores in the first six months of the year, compared with 98 in the same period of 2024.
At the end of June, the network had 2,835 stores, 331 more than a year earlier, with selling area up 13.5% to 1.12 million square meters.
Costs increased with expansion. Sales and marketing expenses rose 22.8% year over year to PLN 2.78 billion.
The cost of goods and materials sold climbed 13.7% to PLN 10.52 billion. Employee benefit costs were up 22.7% to PLN 2.13 billion as headcount increased to 53,523 from 45,274 a year earlier.
Net cash flow from operating activities fell 19.6% to PLN 773.9 million in the first half. Net cash used in investing activities widened to PLN 1.04 billion, 41.2% more than a year earlier, reflecting spending on store openings, expansion of the Agro Rydzyna meat plant and the opening of an 11th distribution center in Warmia and Masuria. Cash used in financing activities rose to PLN 131.3 million from PLN 30.8 million.
At the end of June, Dino Polska’s total assets stood at PLN 13.26 billion, 20.3% higher than a year earlier. Equity rose to PLN 7.82 billion, while total liabilities declined 8.6% from the end of December to PLN 5.44 billion.
Net debt was PLN 544.6 million, compared with PLN 818.1 million a year earlier. The net debt-to-EBITDA ratio for the last 12 months was 0.22x, down from 0.37x.
Dino Polska said no atypical events affected its results in the reporting period. The company noted that while it operates only in Poland, factors such as the war in Ukraine could influence food production costs and expenses in the sector.