Econocom Group (ECONB) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1,335 million, up 3.0% year-over-year, with all business segments contributing and acceleration in Q2.

• Operating margin declined to €38.3 million from €42.7 million, mainly due to €6 million in planned investments in sales, IT, and security.

• Net financial debt dropped sharply to €180 million at end-June 2024, the lowest in a decade, aided by strong free cash flow and the sale of Les Abeilles.

• New governance structure introduced, with Angel Benguigui appointed CEO and a new executive committee to be announced, supporting the One Econocom strategic plan targeting €4 billion revenue by 2028 and doubling 2023 net profit.

• ESG indicators improved, with Ecovadis rating up to 72/100 and SBTi validation of carbon reduction targets.

Financial highlights

• Revenue increased 3.0% year-over-year to €1,335.4 million in H1 2024.

• Operating margin was €38.3 million (2.9% of revenue), down from €42.7 million (3.3%).

• Net profit for the period was €23.1 million, slightly below €24.7 million in H1 2023.

• EBITDA improved year-over-year; EBIT slightly below last year.

• Free cash flow over the past 12 months totaled €88 million.

Outlook and guidance

• 2024 revenue growth guidance confirmed at 3%–5%, with positive trends in Q2 supporting the outlook.

• Net financial debt targeted to approach zero within 12 months, excluding new acquisitions.

• Strategic plan aims for €4 billion turnover by 2028, with 70% organic and 30% acquisition-driven growth, and to double 2023 net profit.

• Continued investment in salesforce and agents in early years to drive future growth, with investment tapering off after 2025.