Economy 30 April 2025, 4:07pm

Hungary's MVM Group achieves substantial profit in 2024

Portfolio

Hungary's MVM Group reported an after-tax profit of HUF 323.7 billion (EUR 825 million) in 2024, slightly below the record profit of HUF 369.1 billion in 2023. Group EBITDA reached HUF 825 billion, the second highest in the company's history after HUF 910 billion in 2023. The Board of Directors proposed a dividend of HUF 339.5 billion, of which HUF 126 billion was paid as an interim dividend.

The consolidated revenue of the group decreased to HUF 4,533 billion from HUF 5,079 billion, parallel with moderating energy prices. Other operating income showed a more significant proportional decline to HUF 883 billion from HUF 1,238 billion. Operating expenses fell to HUF 4,859 billion from HUF 5,672 billion, primarily due to reduced material costs.

Operating profit moderated to HUF 557 billion in 2024 from HUF 644 billion in 2023. With the easing of the interest rate environment, both financial income and expenses decreased, resulting in a reduction of the financial loss to HUF 79 billion from HUF 103 billion.

MVM's pre-tax profit declined to HUF 491.6 billion from HUF 545.5 billion, while after-tax profit decreased to HUF 323.7 billion from HUF 369.1 billion.

The comprehensive income, including various other items, jumped from negative HUF 189.6 billion in 2023 to positive HUF 556.3 billion.

Among various capital elements, only other reserves showed a significant increase of HUF 232 billion, consequently raising equity to HUF 2,169 billion. Long-term liabilities fell by approximately HUF 240 billion to HUF 1,706 billion, while short-term liabilities decreased by HUF 1,042 billion to HUF 1,100 billion.

As a result, liabilities decreased to HUF 3,806 billion from HUF 5,088 billion, significantly improving the debt position, while the net profit generating capacity remains high.

After a record EBITDA of HUF 910 billion in 2023, the second highest EBITDA ever of HUF 825 billion was achieved in 2024, with an EBITDA margin of 18%.

The wholesale segment contributed the largest share (HUF 289 billion) to the EBITDA generation, with infrastructure and energy production also providing significant contributions. Net debt decreased to HUF 1,124 billion from HUF 1,418 billion, improving the net debt/EBITDA ratio to 1.4 from 1.6.

The detailed report also reveals what the Board of Directors proposes to do with the after-tax profit of HUF 323.7 billion. In this context, it should be recalled that the sole shareholder of the wholly state-owned company decided to pay an advance dividend of HUF 126 billion, which was transferred by the company as a cash contribution, following a profit after tax of HUF 222 billion in the first half of the year. The BoD proposes to pay a dividend of HUF 339.5 billion from 2024 profits, taking into consideration the HUF 126 bn already paid.