Romania’s Aquila Q1 net profit falls 26% y/y

The company’s total revenues reached 623.8 million lei in the first three months of 2023, increasing by an annual 11%, Aquila said in an unaudited statement filed with the Bucharest Stock Exchange.

"We focus on expanding the product portfolio for all companies in the group, so that we develop specific solutions for each sales channel. We also continued the organic growth and development of our own brands. The results recorded in the first quarter were supported by increases of over 25% in the HoReCa (hotels, restaurants, and catering) and gas station distribution channels," Aquila CEO, Catalin Vasile, said.

Aquila’s revenue in the distribution segment increased by 11% year-on-year in the first quarter, sales in logistics rose by 2%, while those in the transport segment remained unchanged from the previous year. Own-brand sales rose by 11%.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood flat on the year in the first quarter, at 40 million lei.

Income tax expenses surged by an annual 52% to 7.3 million lei due to the introduction of an additional minimum tax on turnover introduced in 2024. The tax applies to companies that booked a turnover exceeding 50 million euro ($53.8 million) in 2023.

Total assets reached 1.06 million lei at the end of the first quarter, up by an annual 5.9%, while total liabilities grew by 8.4% to 510.2 million lei.

In February, Aquila completed the 3.2 million euro acquisition of local car aerosols producer Romtec, aiming to diversify its product portfolio. In April, Aquila also finalised the takeover of local peers Parmafood Trading and Parmafood Group Distribution for 16.5 million euro.

Aquila operates in Romania and Moldova, offering integrated services in distribution, logistics, and transport. It sells consumer goods in over 72,000 points of sale across all FMCG retail channels, covering 90% of the market with a portfolio of over 10,000 products. In 2023, Aquila’s preliminary net profit rose 14% on the year to 96.9 million lei.

Aquila's shares changed hands 4.03% lower at 1.19 lei as at 1009 CET on Thursday on the Bucharest Stock Exchange.

(1 euro=4.9761 lei)