Biesse (BSS) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues were €395.7 million, down 5.4% year-over-year, with order intake at €277.4 million and backlog stable at €277 million, supported by the GMM acquisition.

• Adjusted EBITDA fell 30% to €32.9 million, and net profit dropped 79.9% to €3.9 million, representing 1.0% of revenues.

• The GMM Group acquisition, completed in January 2024, contributed €62 million in sales and significantly impacted financials and headcount.

• EMEA remained the largest market, accounting for about 64% of sales, with Americas and APAC increasing their shares.

• Strategic initiatives and cost-saving measures, including staff reductions and operational efficiencies, delivered €10 million in savings.

Financial highlights

• Adjusted EBITDA margin was 8.3% (down from 11.2% in H1 2023); EBIT margin was 2.6–3.4%; net profit margin was 1.0%.

• Net financial position turned negative at €7.4 million (from +€91.9 million in H1 2023), mainly due to the GMM acquisition, working capital increase, and dividend payments.

• Net operating working capital increased by €44.3 million since December 2023, reflecting GMM consolidation.

• EBIT after non-recurring events was €10.3 million, down 66.1% year-over-year.

• Tax rate rose to 49.85% from 28.0% in H1 2023.

Outlook and guidance

• Revenue and main economic indicators are expected to remain flat or contract slightly in the next two quarters, with continued cost containment and operational efficiency focus.

• Management will prioritize integration of GMM, cash flow monitoring, and strategic initiatives such as digitalization and international expansion.