Aalberts (AALB) H1 2024 earnings summary

Executive summary

• EBITA margin held at 15% despite a 3.9% organic revenue decline, with sales at €1,619 million and strong profitability in industrial technology; cost-saving actions and continued execution of four strategic actions supported margins.

• EPS before amortisation was €1.61, down from €1.71 in 1H2023, with continued investment in long-term growth.

• Cash flow from operations was €182 million, down from €221 million in 1H2023, with structural cost savings and inventory reduction plans underway.

• No acquisitions in H1 2024; revenue and EBITA comparisons impacted by Disptek divestment.

• Capital expenditure was €117 million, stable year-over-year, supporting long-term growth initiatives.

Financial highlights

• Revenue declined to €1,619 million from €1,717 million in 1H2023; organic revenue down 3.9%.

• EBITA margin was 15.0% (down from 15.4%); EBITA at €242.2 million (down from €264.2 million); added value margin improved to 63.8%.

• Net profit before amortisation was €177.6 million; EPS decreased to €1.61.

• Operating cash flow fell to €182 million; free cash flow before exceptionals dropped to €47.8 million.

• Net finance costs improved by €6 million; net debt increased to €751 million with a leverage ratio of 1.2.

Outlook and guidance

• Market softness in eco-friendly buildings expected to persist in Europe, while growth opportunities are anticipated in the USA and Asia.

• Semicon efficiency segment maintains a positive long-term outlook, driven by AI and strong orderbook.

• Focus remains on organic growth, operational excellence, portfolio optimisation, and sustainable entrepreneurship.

• Second half expected to be flat versus first half, with additional cost-saving impacts.

• Strategy update scheduled for 10 December 2024 at Capital Markets Day.