CIE Automotive (CIE) H1 2024 earnings summary

Executive summary

• Achieved 2.5% sales growth at constant exchange rates in Q2 2024, with H1 sales up 3.1% year-over-year, outperforming the global market, which declined by 0.2% in production volume; net profit attributable to shareholders was €183.9 million, up 3.1% YoY.

• EBITDA margin reached 18.6% in Q2, with EBITDA of €381.9 million in H1 (+3% YoY), and EBIT of €288.1 million (+5% YoY); net income for H1 up 3% to €184 million.

• Operating cash flow for H1 nearly €250 million, up over 5% YoY, with a 66% EBITDA-to-cash conversion rate in Q2; liquidity reserve at €1,737.7 million as of June 30, 2024.

• Debt ratio reduced to 1.45x net financial debt/EBITDA, with net financial debt at €1,085.0 million and €825.3 million in cash and equivalents.

• Business combinations included the acquisition of AKT Plásticos, S.L.U. for €33.4 million, contributing €16.1 million in revenue and €1.5 million in profit for H1 2024.

Financial highlights

• Q2 sales growth of 2.5% at constant FX, H1 growth of 3.1%, with structural outperformance in all regions except China; revenue for H1 2024 reached €2,062.2 million.

• EBITDA margin improved to 18.6% in Q2, with all geographies maintaining 18-20% EBITDA margins; EBITDA for H1 at €381.9 million.

• EBIT conversion rate of 35% for H1, reflecting improved operating profitability; operating profit rose to €288.1 million.

• Net income for H1 reached €184 million, up 3% YoY; earnings per share from continuing operations were €1.533.

• Operating cash flow for H1 at €250 million, up 5% YoY; Q2 cash generation exceeded €120 million.

Outlook and guidance

• 2024 global market expected to contract by 2% YoY, with Q2 down 0.5% and H1 down 0.2%.

• Reconfirmed 2025 guidance and strategic objectives, expecting continued outperformance and margin resilience; sufficient liquidity and cash generation to cover operational needs through 2025.

• CapEx guidance remains at 5% of sales, with a slight increase in 2024 due to growth investments, especially in Mexico.

• Financial expenses expected to remain stable in H2 2024, with a decrease anticipated in 2025.

• Bloomberg consensus for EBITDA growth seen as reasonable and aligned with internal expectations.