ELO (ELO) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was €15.7 billion, down 1.2% year-over-year, with gross margin declining to €3,726 million and margin rate at 23.7% versus 24.3% last year.

• Net loss widened to €981 million from €215 million in H1 2023, mainly due to significant non-recurring items including €283 million goodwill impairment in France and asset write-downs.

• Major acquisitions included Dia stores in Spain and Portugal and Casino stores in France, expanding the store network and contributing to increased goodwill and tangible assets.

• ELO issued a €750 million bond and completed a €300 million capital increase to support development and liquidity.

• Shareholder support continues to enable transformation initiatives, including Auchan 2032 and new executive appointments.

Financial highlights

• EBITDA fell 38% to €339 million from €545 million year-over-year; EBITDA margin dropped to 2.2%.

• Net financial debt rose to €4,477 million from €2,917 million at year-end 2023, reflecting seasonality and acquisitions.

• Free cash flow: -€1,122 million, with net free cash flow at -€1,308 million, reflecting operational challenges and investment outflows.

• Equity decreased to €5,255 million from €5,804 million at December 2023.

• Cash flow from operations dropped to €79 million from €308 million in H1 2023.

Outlook and guidance

• Confidence in future performance based on ongoing transformation plans, including price repositioning, operational efficiency, and expansion in strategic markets.

• Liquidity remains strong with €2.4 billion in undrawn credit lines and recent bond issuance.

• Positive effects expected from recent acquisitions and the purchasing alliance with Intermarché and Casino.

• Management does not see current uncertainties as threatening ELO's financial situation.