Alfen (ALFEN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue increased 10% year-over-year to €245.7 million, mainly 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.

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

• Pre-emptive bank covenant waiver obtained for Q3 2024; ongoing discussions for updated covenant.

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; adjusted net profit of €1.9 million after €13.0 million in one-off adjustments.

• Gross margin dropped to 22.3% (from 30.5%), mainly due to €12.5 million warranty provision and €3.6 million obsolete inventory provision.

• Personnel costs increased 22% year-over-year to €42.6 million, reflecting headcount growth outpacing revenue.

Outlook and guidance

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

• Adjusted EBITDA margin for 2024 projected in the mid-single digits; free cash flow expected to remain negative but improve from 2023.

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

• No capital raise or dividend planned in the foreseeable future; focus remains on investment and growth.

• Q3 segment guidance: EV charging revenue to be below Q2, energy storage in line with Q1, smart grids between Q1 and Q2; Q4 expected to be strongest across all segments.