Sarantis Group H1 2026 Sales Rise on Volume Growth, Guidance Remains Unchanged

Sarantis Group reported first-half 2026 results on September 9, 2026, showing net sales of EUR 308.3 million—up 1.3% from the same period in 2025—driven exclusively by volume growth rather than pricing. Gross profit remained flat at EUR 119.1 million (38.6% margin), while underlying EBITDA grew modestly by 0.4% to EUR 48.5 million (16.7% margin). Underlying EBIT declined 2% to EUR 36.7 million, and underlying net income fell 5% to EUR 27.7 million, reflecting a 4.3% drop in earnings per share to EUR 0.44. Despite these headwinds, dividends rose 25% to EUR 25 million (EUR 0.39 per share), with the payout ratio expanding to 47.1% from 43.5% in H1 2025. The company’s net debt shrank to EUR 29.6 million as of June 30, 2026, from EUR 32.8 million a year earlier, though it stood at EUR 19 million at the time of the call. Capital expenditures were raised to EUR 22 million for 2026, up from an earlier estimate of EUR 20 million, with EUR 18 million already deployed. A EUR 120 million committed loan facility remains available for future acquisitions, though full-year 2026 sales and EBITDA targets of EUR 620 million and EUR 97 million, respectively, were not reaffirmed. The company’s long-term EBITDA target remains EUR 120 million by December 31, 2028. CEO Ioannis Bouras emphasized that price increases were not implemented in H1 2026, citing “volume-driven growth” as the primary driver of sales growth. He also noted persistent volatility and uncertainty in the market, while CFO Christos Varsos underscored the company’s strong balance sheet and cost discipline as key to maintaining profitability. Regional performance varied widely: Greece saw net sales growth of 1.9% with stable margins, while Poland’s branded portfolio expanded 2.3% and EBIT grew nearly 12%. Romania and Ukraine, however, experienced declines of nearly 5% and 10%, respectively, with Ukraine’s EBIT remaining negative. Strategic partnerships contributed 4.9% sales growth, though EBIT fell sharply by over 30%. Digital transformation remained on track, with go-live events completed in most markets except Poland, where the SAP implementation is scheduled for January 2027. The company also set a Scope 1 and Scope 2 emissions reduction target for 2030. Sarantis shares closed down 3.55% at $12.92 on the listing, following a 4.58% drop in the previous session, trading within its 52-week range of $12.08 to $15.82.