M&Z plc - Interim Results

On 27 August 2024, M&Z plc published its interim financial statements covering the six-month period ended 30 June 2024. The company explained that the comparative results for the first half of 2023 were reclassified to conform with the current year’s presentation format.

Revenues increased by 2.5% to €14.7 million compared to the restated figure for the first half of 2023 of  €14.3 million.

Operating costs rose by 1.0% to €13.0 million (restated H1 2023: €12.9 million) as the higher cost of sales outweighed the drop in administrative expenses. Consequently, operating profit surged by 16.5% to €1.67 million, compared to €1.43 million in the corresponding period last year. In this respect, the operating profit margin improved to 11.4% compared to 10.0% in the first half of 2023.

After accounting for finance costs of €0.14 million and a tax charge of €0.58 million, M&Z registered a net profit for the period of €0.95 million which is 12.4% higher than the €0.85 million figure recorded in the same period last year.

The Condensed Statement of Financial Position as at 30 June 2024, compared to figures as at 31 December 2023, shows that total assets decreased by 4.9% (or -€0.92 million) to €17.7 million. Total liabilities decreased by 15.6% (or -1.48 million) to €8.0 million. Meanwhile, adjusted equity (excluding €1.5 million in preference shares) rose by 7.3% to €7.7 million.

Dividend

The Directors approved an unchanged net interim dividend of €0.009 per share which translates into a payout ratio of 41.7% (H1 2023: 46.9%). The dividend will be paid on 30 September 2024 to all shareholders as at the close of trading on 28 August 2024.

Outlook

The directors of M&Z noted that despite demand for branded products remaining strong, the Company faces challenges such as margin compression, inflation, competition and cost of living pressures. In this respect, management remains focused on organic growth, expanding the brand portfolio, and containing costs. Despite expecting continued challenges in the industry, the Board maintained a cautious yet optimistic outlook for the remainder of the year.