Biesse (BSS) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues were €395.7 million, down 5.4% year-over-year, with order intake at €348.9 million and backlog at €277 million; the GMM acquisition contributed over €60 million in sales.

• Net profit was €3.9 million, a decline of 79.9% from H1 2023.

• EMEA accounted for 64% of sales, with Americas at 22% and APAC at 14%; EMEA sales declined, while Americas and APAC grew.

• The GMM Group acquisition was completed in January 2024, impacting revenue, cost structure, and headcount.

• Strategic initiatives delivered €10 million in OpEx and staff cost savings.

Financial highlights

• Adjusted EBITDA for H1 2024 was €32.9 million (margin 8.3%), down 30% year-over-year; EBIT was €13.3 million (margin 3.4%).

• Net financial position turned negative at €7.4 million (positive €24.4 million excluding IFRS 16), mainly due to the GMM acquisition and dividend payments.

• Net operating working capital increased by €44.3 million since December 2023, largely from GMM consolidation.

• Labor costs fell by €9.4 million in the Biesse perimeter, but overall personnel expense rose 3.1% to €130 million due to GMM integration.

• Net working capital dropped by €11 million in the Biesse perimeter compared to December.

Outlook and guidance

• The second half of 2024 is expected to be flat to slightly down, with continued order slowdown and high interest rates impacting performance.

• Management will focus on integrating GMM, cost control, cash flow, and strengthening international presence.