Azelis Group (AZE) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €2.1bn, up 0.2% year-over-year at reported rates and 1.5% at constant currency, with gross profit rising to €526m and adjusted EBITDA at €254m (margin 11.8%).

• Conversion margin remained strong at 48.2%, above prior years, despite market volatility and price pressure.

• Six acquisitions completed or announced in H1, adding over €70m in revenue and supporting portfolio diversification and regional expansion.

• Innovation and sustainability advanced, with award-winning products and progress on ESG targets, including SBTi commitment.

Financial highlights

• Q2 revenue up 4.2% at constant currency, with M&A driving growth; organic revenue stabilized in Q2.

• Gross profit margin improved to 24.5%, up 39 bps year-over-year, supported by mix and margin management.

• Adjusted EBITDA was €274.8m, down 1.6% year-over-year (margin 12.8%); adjusted EBITA at €254m (margin 11.8%).

• Net profit for H1 2024 was €100.1m, down 8.3% year-over-year, mainly due to higher financial expenses.

• Free cash flow dropped 44.3% to €136.5m, with conversion ratio down to 53.3% due to higher working capital.

Outlook and guidance

• Cautiously optimistic for a return to organic growth before year-end, with volume recovery sustained but price pressure persisting.

• No quantitative guidance provided due to ongoing market volatility; strategy update expected in September.

• July performance positive, but visibility for September remains low.