ViaCon Group (VIACON) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales declined by 7.7% year-over-year to EUR 46.2 million, with organic growth at -5.9%, as macroeconomic and geopolitical uncertainty led to cautious markets, though underlying demand, especially in Turkey, remains strong.

• Initiatives to strengthen competitiveness and efficiency are underway, targeting both growth and cost measures, and are expected to yield short- and medium-term benefits.

• Turkey delivered all-time high revenue in H1 2024, driven by infrastructure demand post-earthquake and market share gains over concrete.

• The Polish market is expected to benefit from the release of previously frozen EU funds, with investments anticipated to resume towards year-end and into 2025.

• Order intake rose 2.2% in Q2, driven by Bridges & Culverts Solutions, while GeoTechnical and StormWater Solutions saw weaker demand.

Financial highlights

• Q2 2024 net sales were EUR 46.2 million, down from EUR 50.1 million in Q2 2023; organic sales growth was -5.9%, total growth -7.7%.

• Q2 EBITDA was EUR 3.1 million, down from EUR 5.4 million last year; underlying EBITDA margin was 6.7% (10.8% last year).

• Q2 EBIT was EUR 463 thousand (EUR 2,603 thousand in Q2 2023); adjusted EBIT was EUR 1,233 thousand (EUR 3,850 thousand last year).

• Cash flow from operating activities was -4.2% in Q2, compared to -2.4% last year; H1 improved to EUR -7.1 million from EUR -10.5 million.

• Net debt at end of June was EUR 103.4 million (EUR 91.9 million excluding lease liabilities); cash and equivalents stood at EUR 19.5 million.

Outlook and guidance

• Cautious optimism for gradual market improvement in H2 2024 and into 2025, but continued volatility and cautious customer behavior are expected.

• Infrastructure investments in Poland are anticipated to resume as EU funds become available.

• Efficiency and competitiveness initiatives are expected to help manage ongoing market volatility.

• Strategic focus remains on growing Bridges & Culverts, improving GeoTechnical profitability, and building StormWater Solutions.