EL.En. (ELN) H1 2024 earnings summary

Executive summary

• Group revenues for H1 2024 were €312.96 million, down 9.5% year-over-year, mainly due to industrial sector weakness and challenging market conditions in Italy, China, and the US.

• EBIT declined 12.1% to €34.2 million, but EBIT margin remained solid at 10.9%.

• Net income rose 5.9% year-over-year to €27.3 million, supported by improved margins and a €5 million one-time gain from the cancellation of an earn-out clause.

• The medical sector was resilient, limiting its revenue decline to 1.7%, while the industrial sector saw a sharp 19.9% drop, especially in the cutting segment.

• The group maintained leadership in key application segments, continued to invest in innovation and sustainability, and benefited from insurance/government reimbursements.

Financial highlights

• Revenues: €312.9 million, down 9.5% year-over-year.

• Gross margin: €128.8 million, down 2%, but margin improved to 41.2% from 38% year-over-year, aided by €1.9 million insurance/government reimbursements.

• EBITDA: €41.4 million, down 9.3%, margin stable at 13.2%.

• Net financial position improved to €68.6 million from €54.6 million at year-end 2023, up €14 million.

• Dividend payments totaled €17 million in H1 2024.

Outlook and guidance

• Full-year revenue is not expected to recover fully versus 2023, but EBIT is forecast to exceed 2023 due to a more favorable sales mix and higher weight on medical and international industrial sales.

• Medium-term outlook remains positive, with continued investment in R&D, innovation, and internationalization to capture market growth opportunities.