Aliaxis (094124352) H2 2024 earnings summary

Executive summary

• Sales reached €3.9 billion in 2024, down 4.5% like-for-like, reflecting challenging market conditions and price pressure in most regions.

• Recurring EBITDA was €550 million, down 12.0% like-for-like, with margin at 14.1% versus 15.3% in 2023.

• Net recurring profit was €240 million (EPS €1.39), a 16.1% decrease year-over-year; net income dropped 66% to €110 million due to one-off items and prior year capital gains.

• Significant one-off costs included €31 million related to Asheville flooding and €50.7 million partial impairment of the Valencia customer list.

• Net financial debt increased to €969 million, with leverage at 1.8x REBITDA.

Financial highlights

• Contribution margin declined to 38.5% (down 3.9%), mainly due to lower average sales prices and higher conversion costs.

• Fixed costs increased by €35.3 million, driven by inflation and investments in ERP and capabilities.

• Operating income (EBIT) dropped 47.4% to €221.6 million; EBIT margin fell to 5.7% from 10.4%.

• Goodwill impairment totaled €17.8 million, mainly from Aquarius Spectrum and Zypho.

• Total cash flow for 2024 was -€128 million, driven by lower REBITDA, higher working capital, capex, and dividends.

Outlook and guidance

• Market challenges expected to persist in H1 2025, especially in EMEA; focus remains on recalibrating investments and fixed costs.

• Growth and profitability targeted in North America and India; Asheville site disruption to continue affecting results into 2025, with full restoration expected by mid-2025.