Etex (094124453) H1 2024 earnings summary

Executive summary

• Delivered resilient financial performance in H1 2024, maintaining stable REBITDA margins despite double-digit contractions in new build and renovation markets across Europe, with revenue and REBITDA declines but a solid balance sheet.

• Continued strategic investments in capital expenditure and acquisitions, notably the BGC acquisition in Australia, to support future growth and market expansion.

• Advanced sustainability agenda by committing to the Science Based Targets initiative and progressing toward 2030 ambitions, with improved employee engagement.

Financial highlights

• Revenue decreased by 4.2% year-over-year to €1,931 million, mainly due to volume declines in core markets; like-for-like decrease was 5.7%.

• REBITDA fell 5% to €377 million, with a strong margin of 19.5%, only 0.2% lower than H1 2023.

• Net recurring profit (Group share) dropped 8.1% to €152 million; net profit (Group share) declined 46.7% to €107 million, impacted by hyperinflation accounting and absence of prior year one-off gains.

• Net financial debt stable at €1,174 million, with net financial debt/REBITDA at 1.7x.

• Capital expenditure reached €87 million in H1 2024.

Outlook and guidance

• Management will continue careful and regular evaluation of market conditions for the remainder of 2024, maintaining a responsive approach to volatility.

• Results expected to remain in line with company expectations, supported by ongoing adaptation and strategic initiatives.