Cembre (CMB) Q2 2024 earnings summary

Executive summary

• Consolidated sales for the first half of 2024 reached €119.5 million, up 1.6% year-over-year, with net profit at €20.8 million, down 12.8% from 1H 2023 and a margin of 17.4% on sales.

• EBITDA margin declined to 29.2% from 32.9% in 1H 2023, and EBIT margin to 23.7% from 27.6%.

• The group employs 888 people on average, with a strong European presence and new subsidiaries established in China and the Netherlands.

• Focus remains on innovation, sustainability, and expanding the product range, supported by significant R&D and capital investments.

Financial highlights

• Sales increased 1.6% year-over-year to €119.5 million; EBITDA fell 9.8% to €34.9 million; EBIT dropped 12.6% to €28.4 million.

• Net profit decreased 12.8% to €20.8 million, with a net margin of 17.4%.

• Net financial position shifted from a €18.2 million surplus at end-2023 to a €6.2 million deficit at June 30, 2024, mainly due to €30.2 million in dividends and €13.0 million in capital expenditure.

• Italy accounted for 45.8% of sales, rest of Europe 44.8%, and rest of world 9.4%.

• Average number of employees increased from 856 to 888 year-over-year.

Outlook and guidance

• Despite economic uncertainty and geopolitical tensions, consolidated turnover is expected to grow in 2024, with a positive economic result anticipated.

• Focus on business development through new product launches, R&D, and higher foreign market penetration, especially in the US, Germany, China, and the Netherlands.

• Ongoing investments in automation and production capacity, including a €42 million expansion for electrical connectors.

• Emphasis on cost management and operational efficiency to support future growth.

• As of August 31, 2024, consolidated revenues grew 2.1% compared to the first eight months of 2023.