Fleury Michon (ALFLE) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 declined 5.5% year-over-year to €399.1M, mainly due to continued consumer downtrading and volume declines in core French retail activities.

• Operating profit improved to €7.6M from €6.5M in H1 2023, with margin rising to 1.9% despite lower sales.

• Net profit surged to €46.7M, driven by a €38.9M post-tax gain from the sale of the Platos Tradicionales joint venture.

• International catering business grew 18.1%, offsetting some domestic weakness.

Financial highlights

• Revenue: €399.1M (-5.5% YoY); Operating profit: €7.6M (1.9% margin); Net profit: €46.7M.

• Net debt reduced to €32.3M from €74.9M at end-2023; gearing dropped to 16.5%.

• Cash flow from operations: €10.9M (vs €13.2M in H1 2023); capex: €13.9M.

• Dividend of €5.4M paid in June 2024.

Outlook and guidance

• International catering expected to continue strong growth, but overall outlook remains cautious due to geopolitical instability and ongoing consumer downtrading in France.

• No quantitative guidance provided for H2 2024.

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