Derichebourg (DBG) H2 23/24 earnings summary

Executive summary

• Demonstrated resilience in adverse market conditions, including EU economic slowdown, high electricity prices, sector weakness, and a significant cyberattack impacting results for several months.

• Maintained stable revenue at €3.6 billion and recurring EBITDA at €330 million, with strong free cash flow and strategic focus on margin monitoring and niche business development.

• Public Sector Services achieved record results in revenue, EBITDA, and EBIT, supported by new contracts and operational efficiency.

• Strategic diversification into specialized, technical lines and ramp-up of new sorting lines differentiated the group and supported performance.

Financial highlights

• FY24 revenue: €3,606.4 million, down 0.4% year-over-year; recurring EBITDA: €330 million (9.2% margin), nearly stable vs. FY23.

• Net income attributable to shareholders fell 45% to €74.8 million, mainly due to higher finance costs and absence of prior year non-recurring gains.

• Free cash flow approached €100 million; dividend proposed at €0.13 per share (28% payout, ~3% yield).

• Net financial debt reduced to €713.7 million; gearing at 0.69.

Outlook and guidance

• Confident in long-term demand for scrap metals due to steel industry decarbonization and electrification trends.

• 2025 recurring EBITDA guidance set at a minimum of €350 million, with CAPEX capped at €175 million; free cash flow expected to remain strong as interest rates decline.

• Ramp-up of new sorting lines and expected lower electricity costs to support results.