Delta Plus Group (ALDLT) H1 2024 earnings summary

Executive summary

• Sales/turnover declined 8.9% year-over-year to €193.9m in H1 2024, mainly due to currency effects, Euro strength against RMB, and a high prior-year base.

• Organic growth on a like-for-like basis was -5.8% for H1 2024, with no change in scope of consolidation.

• Adjusted for Argentina, the sales decline was limited to 6.8%.

• Recurring operating margin reached 12.5% (€24.2m), down from 13.3% in H1 2023, as lower sales impacted cost absorption.

• Net income dropped 38% to €12.3m, affected by lower operating income, hyperinflation in Argentina, and a higher effective tax rate.

Financial highlights

• Sales: €193.9m, down 8.9% year-over-year; like-for-like and constant currency (ex-Argentina): -5.8%.

• Recurring operating income: €24.2m (12.5% of sales), down from €28.3m (13.3%) in H1 2023.

• Net income: €12.3m (6.3% of sales), down from €19.8m (9.3%) in H1 2023.

• Currency effect was -9.7% (-€20.6m), with the Argentine Peso depreciation contributing -€18.6m.

• Cost of debt increased by €0.3m to €2.5m due to higher interest rates.

Outlook and guidance

• Targeting positive organic sales/turnover growth for 2024 despite macroeconomic and geopolitical uncertainties.

• Aims to maintain operating profitability at levels achieved in recent years.

• Plans to strengthen financial structure and continue expansion, especially in premium and high-growth regions.