Delta Plus Group (ALDLT) H1 2024 earnings summary

Executive summary

• Sales declined by 8.9% year-over-year to €193.9m in H1 2024, with organic growth at -5.8% and a slightly negative currency effect.

• Recurring operating margin reached 12.5% (€24.2m), down from 13.3% in H1 2023, reflecting lower sales and reduced absorption of fixed costs.

• Net income dropped 38.0% to €12.3m, impacted by lower operating income, hyperinflation in Argentina, and a higher effective tax rate.

• Financial structure strengthened, with stable debt-to-equity ratios and increased shareholders' equity.

Financial highlights

• Sales: €193.9m, down 8.9% year-over-year; like-for-like and constant currency (ex-Argentina) decline of 5.8%.

• Recurring operating income: €24.2m (12.5% of sales), down from €28.3m (13.3%) in H1 2023.

• Net income: €12.3m, down €7.5m year-over-year.

• Cost of sales improved by €18.2m (-17.4%), but variable, personnel, and fixed expenses increased.

• Non-current items at -€1.4m, including a €1.0m impact from acquisition-related negotiations.

Outlook and guidance

• Targeting positive organic sales growth for 2024 despite macroeconomic and geopolitical uncertainties.

• Aims to maintain operating profitability at levels achieved in recent years.

• No significant scope effects anticipated for 2024, but external growth investments will continue.

• Focus on strengthening financial structure to support expansion and geographic diversification.