D'Ieteren Group (DIE) H1 2024 earnings summary

Executive summary

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

• Adjusted profit before tax, Group's share rose 6.4% YoY to €585.5m, driven by organic growth and improved profitability in most businesses, notably D'Ieteren Automotive, PHE, and TVH, despite a decline at Moleskine and flat Belron performance.

• Free cash flow, Group's share nearly tripled YoY to €540.0m, reflecting strong operations and significant working capital improvements.

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

• Confirmed ongoing commitment to the current strategy, supporting organic growth, acquisitions, and operational improvements across all businesses.

Financial highlights

• Group sales, Group's share increased 5.8% YoY to €6,292.0m in H1-2024.

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

• Net cash position at group level was about EUR 1.1 billion (EUR 800 million excluding shareholder loan).

• Impairment charges: EUR 15 million on Credit Suisse supply chain fund and EUR 131.4 million at Moleskine.

• Adjusted PBT, Group's share reached €585.5m (+6.4% YoY).

Outlook and guidance

• Confirmed mid- to high-single-digit growth in adjusted PBT group share for FY2024, assuming stable FX and no major geopolitical escalation.

• Belron: mid- to high-single-digit organic sales growth and continued margin improvement, targeting 23% margin in 2025.

• D'Ieteren Automotive: sales expected to be flat versus 2023, with slightly increasing adjusted operating margin and improving free cash flow.

• PHE: mid-single-digit organic sales growth and flat adjusted operating margin expected.

• TVH: organic top-line growth outlook lowered to mid-single-digit, but margin outlook raised by 150 bps vs. 2023.

• Moleskine: sales now expected to grow mid- to high-single-digit, with only slight margin improvement.