Synergie (SDG) H1 2024 earnings summary

Executive summary

• Revenue grew 2.9% year-over-year to €1,555.4 million, driven by international expansion and sector diversification despite challenging market conditions and economic headwinds.

• EBITDA declined 16.5% to €63.3 million, and EBITA fell 20.8% to €50.4 million, reflecting a challenging economic environment and ongoing transformation.

• Net profit dropped 23.1% to €31.7 million compared to H1 2023, impacted by market contraction and higher investment costs.

• International operations contributed 59% of total revenue, with strong growth in Southern, Northern, and Eastern Europe.

• Acquisition of IPA in Australia and RUNTIME Group in Germany expanded the group's international footprint and targeted significant revenue growth.

Financial highlights

• Revenue increased by €44.4 million (+2.9%) year-over-year to €1,555.4 million, with organic growth of 1.6%.

• EBITDA margin was 4.1% (down from 5.0%), and EBITA margin was 3.2% (down from 4.2%).

• Cash flow from operating activities reached €47.1 million, and closing cash position was €396.2 million.

• Shareholders' equity stood at €690.3 million as of June 30, 2024, strengthening the financial structure.

• Net cash position improved to €313.0 million, up from €280 million at end-2023.

Outlook and guidance

• Expects higher revenues in H2 2024, driven by diversification, international expansion, and targeted acquisitions.

• Remains cautious about improving operational profitability amid ongoing macroeconomic and regulatory challenges.

• Focus on market share gains, digital transformation, and sector/country diversification.