CIR (CIR) H1 2024 earnings summary

Executive summary

• Net profit surged to €114.3 million in H1 2024, driven by major divestitures, improved operations, and capital gains from asset disposals.

• Consolidated revenues rose 2% year-over-year to €928.2 million, with 9% growth in healthcare (KOS) and a 2.7% decline in automotive (Sogefi).

• Free cash flow reached €365.1 million, mainly due to the sale of Sogefi's Filtration division and a Milan property.

• Share buybacks and cancellation reduced share capital by 5.7%.

• Extraordinary shareholder meeting called for bylaw amendments, including voting rights and board structure.

Financial highlights

• EBITDA increased to €134.4 million (14.5% margin), EBIT to €49.5 million (5.3% margin), both up year-over-year.

• Net result from continuing operations was €27.7 million, up from a €3.2 million loss; total net income including asset sales was €114.3 million.

• Net financial position before IFRS 16 improved to €316.2 million surplus from net debt at year-end 2023.

• Group equity increased to €863.3 million from €743.4 million at year-end 2023.

• Basic EPS rose to €0.1088 from €0.0130.

Outlook and guidance

• KOS expects further recovery in occupancy and margins, with full-year results anticipated to surpass 2023.

• Sogefi anticipates a low single-digit revenue decline in 2024 but expects improved operating profitability, excluding non-recurring items.

• Group outlook remains cautious due to macroeconomic, inflation, and financial market uncertainties.