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Investing.com -- Shares of Esprinet (BIT:PRT) jumped more than 14% on Thursday after the Italian technology distributor posted second-quarter results that exceeded forecasts, lifted by strong demand in services and green technology.
Revenue for the quarter reached €969.1 million, up 4.9% from €923.7 million a year earlier. The figure was slightly ahead of estimates of €959.6 million.
Growth came from all major markets, with Italy up 3%, Spain up 7% and Portugal advancing 55%.
By client category, resellers increased in the high single digits, while retailers declined by a similar rate.
By product, value-added divisions outperformed. V-Valley, focused on services and solutions, grew 16%, while Zeliatech, which specializes in green technology, rose 30%. Screens gained 4%, while devices fell in the mid-single digits.
Gross profit climbed 9.7% year over year to €56 million, raising the gross margin to 5.8% from 5.5%.
Adjusted EBITDA rose 38.2% to €14.3 million, with a margin of 1.5% compared with 1.1% a year earlier.
Operating expenses increased about 2.5% from a year earlier, slower than the 13% growth recorded in the first quarter.
Net profit stood at €2.9 million, compared with €0.1 million in the second quarter of 2024, but below estimates of €3.8 million due to a higher tax rate. Net debt closed the quarter at €327.5 million, nearly double the €164 million reported a year earlier and slightly above projections.
The company’s cash conversion cycle lengthened to 29 days, up seven days year over year and five days from the first quarter, mainly due to higher receivables and lower payables.
For the first half of 2025, revenue totaled €1.93 billion, up 4.4% from €1.85 billion a year earlier.
Gross profit increased 6.1% to €109.8 million, while adjusted EBITDA rose 1.9% to €25.1 million. Net profit for the six months was €3.4 million, compared with €3.3 million in the same period of 2024.
Esprinet reiterated its full-year guidance for adjusted EBITDA between €63 million and €71 million.
Management said revenue growth accelerated in July and August, with Iberia rising in the double digits and Italy in the mid-single digits. Screens were highlighted as a key contributor, supported by the ongoing PC replacement cycle.