BELIMO (BEAN) H1 2024 earnings summary

Executive summary

• Net sales grew 9.7% in local currency and 5.6% in CHF to CHF 473.5 million, exceeding the 5-year average, driven by energy efficiency trends and data center growth.

• EBIT increased to CHF 93.0 million with a margin of 19.6%, reflecting contribution margin expansion.

• Free cash flow rose 27.8% to CHF 69.8 million on a comparable basis versus HY1 2023.

• Americas and Asia Pacific outperformed, with strong demand in data centers, retrofit, and high-growth verticals.

• Strategic initiatives like RetroFIT+ and digitalization supported market outperformance and operational progress.

Financial highlights

• Net income reached CHF 77.2 million, up 18.8% year-over-year, with EPS at CHF 6.28.

• Operating cash flow was CHF 85.6 million, and capex investments totaled CHF 16.4 million.

• Equity ratio stood at 75.3% as of June 30, 2024, with net liquidity at CHF 57.6 million.

• Free cash flow was CHF 69.8 million (CHF 79.6 million YoY, which included a CHF 25.0 million term deposit divestment).

• Positive sales mix and price realization nearly offset FX headwinds.

Outlook and guidance

• Full-year sales growth expected above the five-year average, with stable sequential sales in H2.

• EBIT margin for the full year may be impacted by annualized cost increases and FX movements.

• Americas and EMEA anticipate stable sales in H2, while Asia Pacific expects acceleration, especially in India.

• EMEA retrofit and Americas data center demand expected to remain strong.

• Year-over-year revenue growth is anticipated to accelerate in H2 2024, with similar sales expected for both halves.