Delticom (DEX) Q2 2024 earnings summary

Executive summary

• Revenue grew 7.2% year-over-year to €211.9m–€212.0m in H1 2024, driven by strong Q1 sales and platform expansion.

• EBITDA increased 15.2% to €7.8m, with an EBITDA margin of 3.7%.

• Net result declined to €0.1m from €1.5m in H1 2023, mainly due to higher depreciation and tax expenses.

• Gross margin improved by 3.5 percentage points to 26.4% due to pricing and sales mix.

• Equity ratio strengthened to 20.6% from 17.5% a year earlier.

Financial highlights

• Gross profit rose 6.0% to €66.4m; gross margin up to 26.4%.

• Personnel expenses fell 5.8% to €7.0m, reflecting headcount reduction.

• Transportation costs increased 23.6% to €20.4m due to higher volume and country mix.

• Cash flow from operating activities was negative at €-21.5m, mainly due to inventory build-up.

• EBIT decreased to €2.8m (margin 1.3%) from €3.2m (margin 1.6%) year-over-year.

Outlook and guidance

• Full-year 2024 revenue expected at €450–470m; operative EBITDA forecast at €19–21m.

• Positive free cash flows projected for 2024 and beyond.

• No repeat of the strong 2023 winter tyre business anticipated; market recovery or deterioration not factored into guidance.

• Targeting at least the same number of new customers as 2023 (737,000).

• No significant change in risk and opportunity position compared to the previous year.