Azelis Group (AZE) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was stable at EUR 2.1bn, with Q2 group revenue up 4.4% year-over-year, driven by M&A and stable organic revenue.

• Gross profit grew 1.8% to EUR 526.5m, with margin expanding 39 bps to 24.5%; adjusted EBITDA/EBITA at EUR 254m (margin 11.8%).

• Net profit for H1 2024 was EUR 100.1m, down 8.3% year-on-year, mainly due to lower operating profit and higher interest expense.

• Six acquisitions completed or announced in H1, adding over EUR 70m in annual revenue and supporting portfolio diversification and regional expansion.

• Innovation and sustainability advanced, with award-winning products and SBTi commitment for greenhouse gas reduction.

Financial highlights

• Revenue grew 1.5% year-on-year at constant currency, driven by 3.8% growth in Life Sciences and a 2.3% decline in Industrial Chemicals.

• Adjusted EBITDA was EUR 274.8m, down 1.6% year-on-year, with a margin of 12.8%.

• Free cash flow dropped 44.3% to EUR 136.5m, mainly due to higher working capital investments.

• Gross profit margin improved to 24.5%, up 39 bps year-on-year.

• Leverage ratio increased to 2.7x, with net debt at EUR 1.4bn and liquidity of EUR 734.5m at period end.

Outlook and guidance

• Cautiously optimistic for a return to organic growth before year-end, with volume recovery sustained but price pressure persisting.

• No quantitative guidance provided due to ongoing market volatility; strategy update to be presented in September.

• Market recovery timing remains uncertain amid global economic and political uncertainty.