Mondadori (MN) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 grew by 3.8% year-over-year to €705.8 million, with organic growth of 1.1% after adjusting for acquisitions.

• Adjusted EBITDA increased by 3.1% to €133.3 million, driven by Trade Books, Retail, and Media segments, maintaining a margin near 19%.

• Net profit declined by 10.6% to €59.3 million, mainly due to the absence of prior year non-recurring gains and higher tax expense; adjusted net profit was stable at €63.2 million.

• Major acquisitions included 51% of Star Shop, 100% of Chelsea Green Publishing, and 51% of Fatto in casa da Benedetta, contributing to revenue growth.

• Strong cash generation with LTM Ordinary Cash Flow of €67.3 million and Free Cash Flow of €38.1 million.

Financial highlights

• Revenue: €705.8 million (+3.8% year-over-year); organic growth 1.1%.

• Adjusted EBITDA: €133.3 million (+3.1%); margin 18.9%.

• Adjusted EBIT: €93.8 million (+1.3%); reported EBIT: €88.3 million (-2.4%).

• Adjusted net profit: €63.2 million (flat year-over-year); net profit: €59.3 million (-10.6%).

• Net financial position (no IFRS 16): €-150.9 million, stable year-over-year; with IFRS 16: €-229.7 million.

Outlook and guidance

• 2024 guidance confirmed: low single-digit revenue growth and mid single-digit adjusted EBITDA growth, with stable margins around 17%.

• Ordinary Cash Flow for FY 2024 expected at around €70 million, despite higher CapEx for plant renovation.