Alfen (ALFEN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue increased 10% year-over-year to €245.7 million, driven by Energy Storage Systems and Smart Grid Solutions.

• Adjusted EBITDA fell 36% to €13.5 million (5.5% margin), reflecting margin pressure and higher costs.

• Net profit swung from €9.4 million in H1 2023 to a loss of €11.1 million in H1 2024, mainly due to significant one-off costs.

• Adjusted gross margin declined to 28.9% from 30.5%, while reported gross margin dropped to 22.3% due to one-off costs.

• Strategy validation and organizational right-sizing project underway, with further updates expected in Q3.

Financial highlights

• Revenue rose 9.7% to €245.7 million in H1 2024, with Smart Grids and Energy Storage as main contributors.

• Adjusted EBITDA was €13.5 million, down from €21.1 million in H1 2023.

• Net loss of €11.1 million in H1 2024 versus net profit of €9.4 million in H1 2023; adjusted net profit was €1.9 million.

• Gross margin dropped to 22.3% due to a €12.5 million warranty provision for moisture issues and a €3.6 million inventory provision in EV charging.

• Personnel costs increased 22% to €42.6 million; other operating costs rose to €16.0 million.

Outlook and guidance

• Full-year 2024 revenue expected between €485 million and €520 million.

• Adjusted EBITDA margin forecasted at mid-single digits; free cash flow to remain negative but improve from 2023.

• One-off restructuring costs expected in H2 2024, with cash outflow mainly in Q1 2025.

• No capital raise or dividend planned; focus on revised business plan and updated bank covenant.

• ESS revenue expected to decline ~20%, EVC to grow 5–10%, SGS to grow ~5% versus 2023.