Groupe OKwind Société anonyme (ALOKW) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was €31.4M, down 16% year-over-year, mainly due to a 17% drop in B2B and 7% in B2C segments, impacted by electricity price volatility, political uncertainties, high interest rates, and adverse weather.

• EBITDA margin fell to 3.8% from 12.5% in H1 2023, with EBITDA dropping 74% to €1.2M, reflecting lower activity and higher structuring costs.

• Net result turned negative at -€0.2M versus €2.8M profit in H1 2023.

• Gross margin improved by over 2 points to 50.9%, aided by supplier negotiations and lower material costs.

• Cash position remains strong at €15.2M as of June 30, 2024, with improved operating cash flow.

Financial highlights

• H1 2024 revenue: €31.4M (down 16% year-over-year); B2B: €27.7M (down 17%), B2C: €3.7M (down 7%).

• EBITDA: €1.2M (down 74%); EBITDA margin: 3.8%.

• Operating income: €0.1M (down 97%).

• Personnel expenses rose 11% to €7.6M, reflecting ongoing group structuring.

• Other operating expenses increased by 12%, mainly due to higher subcontracting and rental costs.

Outlook and guidance

• 2024 revenue expected to reach €64M, with consolidated EBITDA margin projected above 7%.

• Q3 2024 revenue reached €46.1M, down from €55.3M a year earlier.

• Order intake for the first nine months was €36.9M, significantly below €60.3M in the prior year.

• Order backlog at September 30, 2024, stood at €25.5M, down from €45.9M year-over-year.

• Management anticipates a rebound in order intake in Q4 2024, especially in the Farm business line.