M&Z plc - Full-Year Results

On 11 April 2025, M&Z plc published its Annual Report and Financial Statements for the year ended 31 December 2024. The comparative revenue and operating expenses for 2023 were reclassified to conform with the current year’s presentation format.

Revenue remained practically unchanged at just under €30 million as the company maintained a stable performance across a wide range of renowned fast-moving consumer goods.

On the expenditure side, operating costs (net of other operating income) fell by 1.9% to €26.9 million, reflecting the absence of the loss allowance regarding trade receivables that was recognised in 2023. As a result, operating profit (EBIT) rose by 21.5% to €3.47 million compared to €2.86 million in 2023 and the EBIT margin improved to 11.6% compared to 9.6% in the previous year. Excluding depreciation and amortisation charges, EBITDA increased by 14.1% to €4.40 million which translates into an EBITDA margin of 14.7% (2023: 12.9%).

After accounting for net finance costs of €0.29 million and tax charges of €1.16 million, the net profit for the year amounted to €2.02 million which is 14.6% higher than the previous year and translates into a return on equity of 24% (2023: 22%).

The Statement of Financial Position as at 31 December 2024 shows that total assets fell by 13% (or €2.6 million) to €16.9 million reflecting marginal reduction across virtually all line items. Likewise, total liabilities decreased by 15% (or €1.5 million) to €8.3 million, which includes borrowings of €2.71 million, lease liabilities of €1.37 million and preference share capital of €1.25 million. Overall, the company’s equity base advanced by 5.3% (or €0.4 million) to €8.58 million, which includes the recognition of a treasury share reserve attributed a negative value of €0.30 million, which is the expense related to the buyback of 500,000 ordinary shares in November 2024.

Dividend

The Directors of M&Z are recommending a final net dividend per share of €0.0162 to all shareholders as at close of trading on 28 May 2025, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 4 June 2025. The final dividend is expected to be paid by not later than 27 June 2025.

Coupled with the net interim dividend per share of €0.009 paid in September 2024, the total net dividend per share for the year amounts to €0.0252, which is 12.7% lower than the previous year and translates into a payout ratio of 56% (2023: 74%).

Share Buyback Programme

The Directors will be proposing a new share buyback programme for the consideration of the shareholders at the upcoming AGM. M&Z will be sending an explanatory circular to all shareholders prior to the AGM containing all the information relating to the proposed buyback programme.

Outlook

In their commentary, the Directors explained that in the current financial year, the company is anticipating modest growth in revenues, despite the uncertainties in the market landscape. The company is also actively implementing rigorous cost-saving initiatives to improve overall efficiency and deliver greater value across all sectors of the business.

The Directors explained that in addition to continuously actively sourcing key suppliers, another growth strategy that has been identified is the extension of the brand portfolio through several successful mergers and acquisitions. This activity has been key in driving M&Z into new product segments, allowing it to increase and diversify its product range. The Board continues to regard this strategy as a key growth driver to penetrate new market segments and to continue to strengthen the company’s position within existing segments.

The Board stated that a balanced approach to growth, efficiency, and shareholder returns will underpin the company’s success in navigating the upcoming challenges and opportunities in the market. The Directors also reiterated the commitment to a policy of sustaining stable and secure dividend distributions, commensurate to market conditions.