Esprinet (PRT) H1 2024 earnings summary

Executive summary

• Q2 2024 marked a return to growth, with sales up 4% year-over-year to €923.7M, driven by market share gains in Italy and Spain, especially in high-margin Solutions and Services segments.

• Adjusted EBITDA grew 9% in Q2 2024 to €10.3M, with H1 2024 nearly flat at €24.7M, and net income turned positive at €3.3M after a prior year loss.

• The group outperformed the market in Italy and Spain, with robust growth in Solutions and Services and improved profitability.

• Retail and consumer segments rebounded in Q2, with retailer sales up 19% and consumer segment gross sales rising 19% in Q2.

• Net financial position improved to negative €164.0M from negative €207.2M a year earlier, reflecting better working capital management.

Financial highlights

• Gross profit margin improved to 5.67% from 5.53% year-over-year, despite a slight decline in gross profit to €104.8M.

• Adjusted EBIT for H1 2024 was €14.0M, down 9% year-over-year, mainly due to higher amortisation and depreciation.

• Cash conversion cycle reduced to 22 days in Q2 2024, down 9 days year-over-year.

• Earnings per share improved to €0.07 from -€0.54 in H1 2023.

• Cash and cash equivalents at June 30, 2024, stood at €163.5M.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance is confirmed at €66–71M, up from €64.1M in 2023, with an update expected in November.

• Market recovery is anticipated in H2 2024, supported by easing inflation, lower interest rates, and digital transformation trends.

• Long-term growth is expected, driven by AI adoption and increased demand for distributor-provided services.