Avolta (AVOL) H1 2024 earnings summary

Executive summary

• Delivered strong H1 2024 results with turnover of CHF 6,342.6m–CHF 6,462.7m, up 11% year-over-year, and positive momentum into the summer.

• Organic growth reached 7.1%, with EBITDA up 15.6% to CHF 568.3m and margin expanding by 40bps to 9%.

• Net profit to equity holders rose 46.7% to CHF 181.9m; adjusted (CORE) net profit was CHF 253.2m.

• Equity free cash flow grew over 29% to CHF 213.5m–CHF 313.5m, and core net profit after minorities rose 47% to CHF 182m.

• Continued active portfolio management, strategic transformation in stores and digital, and robust demand support a promising outlook.

Financial highlights

• Revenue/turnover reached CHF 6.3bn–CHF 6,462.7m for H1 2024, up 11% year-on-year; gross margin improved by 110bps to 65%–65.5%.

• EBITDA rose 15.6% to CHF 568.3m, with margin at 9% (up 40bps); operating profit (IFRS) was CHF 408.8m.

• Net profit to equity holders was CHF 181.9m, up 46.7%; basic EPS CHF 1.22.

• Equity free cash flow was CHF 213.5m–CHF 313.5m, the highest ever for H1; leverage reduced to 2.35x.

• CapEx was CHF 223.3m, representing 3.5% of turnover.

Outlook and guidance

• Confirmed organic growth target of 5–7% per year, with EBITDA margin expansion of 20–40bps annually.

• Equity free cash flow expected to increase 100–150bps per year, likely at the top end of the range for 2024.

• Capital allocation policy: one-third of equity free cash flow to dividends, two-thirds to strategic growth or deleveraging.

• Leverage target remains 1.5–2x net debt/EBITDA, with flexibility up to 2.5x for acquisitions.

• Management expects continued strong performance in H2, supported by seasonality.