Fleury Michon (ALFLE) H1 2024 earnings summary

Executive summary

• Revenue declined by 5.5% year-over-year in H1 2024, mainly due to lower sales in the GMS segment amid consumer downtrading and price reductions.

• Operational margin was maintained despite the revenue drop, with operating margin rising to 1.8% from 1.4% a year earlier.

• A significant one-time gain of €38.9M was realized from the sale of the Platos Tradicionales joint venture.

• Net income reached €46.7M, driven by the exceptional profit from the JV sale.

Financial highlights

• H1 2024 revenue: €399.1M, down from €422.3M in H1 2023.

• Operating income: €7.2M (1.8% margin), up from €6.1M (1.4%) in H1 2023.

• Net income from continuing operations: €7.7M, up from €6.9M in H1 2023.

• Net consolidated income: €46.7M, including the €38.9M gain from the JV sale.

• Positive cash flow from operations: €10.9M, slightly below €13.2M in H1 2023.

Outlook and guidance

• No quantified guidance provided due to ongoing uncertainties.

• GMS France expected to remain under pressure from negative consumption trends.

• Air catering segment anticipated to continue benefiting from strong international air traffic.