Mondadori (MN) H2 2023 earnings summary

Executive summary

• FY23 revenue was €904.7m, up 0.2% reported and 1.1% like for like; adjusted EBITDA rose 11.5% to €152.1m.

• Net profit grew 19.9% to €62.4m; ordinary cash flow reached €68.7m and IFRS 16 net debt fell to €158.6m.

Financial highlights

• EBITDA increased 13.9% to €148.9m and EBIT rose 15.8% to €84.2m; adjusted EBIT was €102m, up 13.1%.

• Adjusted EBITDA growth was 14.2% excluding differing reliefs and contributions in each period.

• Ordinary cash flow grew 15.1% to €68.7m; free cash flow was €53.5m versus €0.2m in 2022.

• Adjusted net profit, excluding non-recurring items, PPA costs and impairments, was ~€71m, up ~11%.

Outlook and guidance

• FY24 guidance: low-single-digit revenue growth, mid-single-digit adjusted EBITDA growth and a margin close to 17%.

• FY26 targets include ~€1bn like-for-like revenue and profitability around 17%; ordinary cash flow is expected to be at least €70m annually in 2024–2026.

• The 2024–2026 dividend policy targets the greater of 50% of ordinary cash flow per share or prior-year DPS increased by 10%, subject to annual Board review.