Centiel (CNTL) H1 2024 earnings summary

Executive summary

• Achieved net revenue of CHF 145.7 million in H1 2024, a 5.5% decrease year-over-year, with positive operational EBIT of CHF 313,000 before impairment effects.

• Successful investor search led to the signing of a share purchase agreement to sell 100% of HOCHDORF Swiss Nutrition AG (HSN) to AS Equity Partners for an enterprise value of CHF 83 million.

• The sale is expected to secure the future of the operational business but will not generate sufficient proceeds to cover the holding's debts, resulting in likely total loss for shareholders and bondholders.

• The holding company has been granted provisional debt restructuring moratorium and will propose delisting and renaming at an extraordinary general meeting.

Financial highlights

• Net revenue: CHF 145.7 million (H1 2024), down from CHF 154.2 million (H1 2023).

• EBITDA: CHF 6.1 million (margin 3.7%), slightly down from CHF 6.7 million (margin 3.9%) in H1 2023.

• Gross margin: 30.2% (H1 2024) vs. 30.5% (H1 2023).

• EBIT: CHF -141.0 million after impairment (CHF 313,000 operational EBIT before impairment).

• Net result: CHF -141.5 million (H1 2023: CHF -0.9 million).

• Free cash flow: CHF -6.7 million.

Outlook and guidance

• Expectation of normalized sales in Infant Nutrition in H2 2024, aiming to meet annual targets.

• Food Solutions segment anticipates high milk intake but lower order volumes from the chocolate industry in H2.

• Ongoing process improvements and cost stabilization due to easing energy and logistics markets.