Groupe Airwell (ALAIR) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €25.7m, down 20.8% year-over-year, reflecting a challenging market, especially in real estate and heat pumps, with gross margin improving by 7 points to 38.4%.

• Mainland France saw 4.3% revenue growth to €16.0m, driven by Airwell Industrie and strong Air/Air heat pump sales, offsetting sharp declines in overseas (-44.6%) and international (-43.1%) regions.

• Investments increased in new offerings such as "Ma Maison Hybride", "Leezy", and "Airwell Industrie", impacting profitability.

• Net loss reached -€0.8m versus a €1.0m profit in H1 2023; EBITDA was nearly breakeven at -€0.2m.

• 95% of sales were in the residential sector, with commercial representing 5%.

Financial highlights

• Net consolidated income (group share) was -€756,523 for H1 2024, compared to €1,005,700 in H1 2023.

• Gross margin: €9.9m (38.4% of revenue), up from 31.1% in H1 2023.

• EBITDA: -€0.2m (vs. €1.8m in H1 2023); EBIT: -€0.4m (vs. €1.6m in H1 2023).

• Earnings per share for H1 2024 was -€0.12, compared to €0.22 in H1 2023.

• Cash and cash equivalents at June 30, 2024, stood at €2.2m, down from €3.47m at year-end 2023.

Outlook and guidance

• Strong rebound in sales expected in H2 2024, driven by order catch-up, new product launches, and sequential revenue improvement.

• Confident in achieving full-year growth for 2024 and reiterates 2025 revenue ambition of over €100m with EBITDA margin target above 5%.

• Launch of updated smart home solution and energy renovation financing offer planned for H2.