Serge Ferrari Group (SEFER) H1 2024 earnings summary

Executive summary

• H1 2024 revenue declined 7.7% to €161.9 million, with a sharp Q1 drop and gradual Q2 recovery, and significant regional disparities in performance.

• Implementation of the Transform 2025 plan led to major restructuring, especially between Krefeld and La Tour du Pin, incurring non-recurring costs.

• Adjusted EBIT/REBIT fell 24.5% to €8.8 million, supported by cost optimization despite lower volumes.

• Net result swung to a loss of €8.8 million, mainly due to non-recurring restructuring costs.

• Focus on innovation, sustainability, and integration of recent acquisitions to drive long-term growth.

Financial highlights

• Revenue for H1 2024 was €161.9 million, down 7.7% year-over-year.

• Gross margin stood at 50.8%, nearly stable compared to 51.1% in H1 2023.

• Operating income dropped to €0.5 million from €10.7 million in H1 2023.

• Net result swung to a loss of €8.8 million from a profit of €6.0 million in H1 2023, mainly due to restructuring costs.

• Operational cash flow improved significantly, generating up to €25.8 million versus a €4.4 million outflow last year.

Outlook and guidance

• 2024 strategy centers on profitability improvement through Transform 2025 and synergy development.

• Management expects improved profitability in the medium term as operational improvements and market recovery take effect.