Barco (BAR) H1 2024 earnings summary

Executive summary

• First half 2024 sales were €434.5m, down 16.6%-17% year-over-year, but Q2 saw a rebound in orders and sales, especially in the Americas, with a record orderbook of €533m and book-to-bill above 1.

• EBITDA was €35.2m (8.1% of sales), down from €65.0m (12.5%) in 1H23; net income was €9.0m; free cash flow improved to €14.6m-€15m, mainly due to lower working capital.

• Gross profit margin remained resilient, with improvements in healthcare and entertainment offset by declines in enterprise due to lower ClickShare sales.

• Eco-label product revenue rose to 64% of total, up 4 percentage points year-over-year.

• New Entertainment plant in Wuxi, China opened; multiple new product launches planned for 2H24.

Financial highlights

• Q2 orders were €243m and sales €238.6m, up 10% and 22% respectively from Q1.

• EBITDA margin for H1 was 8.1%-8.5% (vs. 12.5% last year), mainly impacted by lower sales volumes.

• OpEx reduced by €6m year-over-year, with headcount down by 170-173 since the start of the year.

• CapEx for H1 was €19m-€19.1m, including Cinema as a Service and the new Wuxi factory.

• Net cash position at €172.6m-€173m, down from the start of the year due to dividends, share buybacks, and Cinionic buyout.

Outlook and guidance

• Management expects topline and EBITDA growth in H2 2024 vs. H2 2023, with full-year EBITDA margin guided between 11%-13%.

• Growth anticipated across all divisions, with particular strength in entertainment and healthcare; enterprise expected to recover in H2.

• Visibility remains challenging, especially for ClickShare and EMEA, which have less backlog and more book-to-bill dynamics.

• New product launches across all divisions anticipated to drive growth and profitability.