D'Ieteren Group (DIE) H1 2024 earnings summary

Executive summary

• Announced a major family shareholding reorganization, consolidating control under Nicolas D'Ieteren for long-term stability and simplified governance.

• Proposed an extraordinary dividend of EUR 74 per share (EUR 4 billion total), funded by group liquidity, new debt, and a special dividend from Belron.

• Adjusted profit before tax, Group's share rose 6.4% YoY to EUR 585.5 million, driven by organic growth and improved profitability in most businesses, notably D'Ieteren Automotive, PHE, and TVH.

• Free cash flow, Group's share nearly tripled YoY to EUR 540 million, reflecting strong operations and significant working capital improvements.

• 2024 guidance confirmed for mid- to high-single-digit growth in adjusted PBT, Group's share.

Financial highlights

• Group sales, Group's share increased 5.8% YoY to EUR 6,292 million in H1 2024.

• Adjusted operating result, Group's share up 6.7% YoY to EUR 696.9 million.

• Net cash position at group level of nearly EUR 1.1 billion; EUR 800 million excluding shareholder loan.

• Impairment charges: EUR 15 million on Credit Suisse supply chain fund and EUR 131 million at Moleskine.

• Top-line growth led by PHE (+7%), TVH (+6.8%), Belron (+6.7%), and D'Ieteren Automotive (+4.8%).

Outlook and guidance

• Mid- to high-single-digit growth in adjusted PBT, Group's share confirmed for 2024.

• Belron: mid- to high-single-digit organic sales growth, margin improvement, and high free cash flow.

• D'Ieteren Automotive: sales broadly flat, margin to slightly increase, FCF to improve.

• PHE: mid-single-digit organic sales growth, stable margin, NCI around EUR 10 million.

• TVH: mid-single-digit organic top-line growth, margin to improve by 150bps, strong FCF.

• Moleskine: sales to grow mid- to high-single-digit in H2, margin to slightly increase.