Exclusive Networks (EXN) H1 2024 earnings summary

Executive summary

• Gross sales increased by 10% year-over-year to €2,564 million, with organic growth and contributions from the NextGen acquisition, notably boosting APAC momentum.

• IFRS revenue declined by 7% to €723 million, mainly due to a shift from hardware to software and support, especially in EMEA and APAC.

• Adjusted EBIT rose 5% to €88 million, with margin stability and strong cash generation despite investments and integration costs.

• Net margin improved 6% to €235 million, representing 9.2% of gross sales, reflecting a favorable mix shift toward software and support.

• Vendor and customer retention rates remained above 100%, supporting sustainable growth.

Financial highlights

• Gross sales: €2,564 million (+10% reported, +11% constant currency year-over-year).

• IFRS revenue: €723 million (-7% year-over-year), reflecting hardware decline.

• Adjusted EBIT: €88 million (+5% year-over-year).

• Adjusted net income: €46 million (+2% year-over-year).

• Cash conversion ratio: 47% (down from 116% in H1-23), with adjusted operating free cash flow of €45 million.

Outlook and guidance

• FY24 gross sales growth targeted at 10–12% at constant currency.

• Net margin guidance: €500–515 million.

• Adjusted EBIT expected between €200–210 million.

• Adjusted operating free cash flow to exceed 80% of adjusted EBITDA.