Guerbet (GBT) H1 2024 earnings summary

Executive summary

• Revenue reached €419.2 million in H1 2024, up 11.8% at constant exchange rates, with growth across all business segments and geographies.

• Restated EBITDA margin improved to 15.4% from 12.7% a year earlier, exceeding the 2021 benchmark, driven by price increases, product mix, and financial discipline.

• Net income rose to €10.0 million from €1.3 million in H1 2023, reflecting improved operating performance despite higher financial and tax expenses.

• Free cash flow was negative at -€29.1 million, but improved significantly from -€72.0 million in H1 2023.

• Strategic focus continued on Diagnostic Imaging, Interventional Imaging, and Artificial Intelligence, with new product launches and partnerships.

Financial highlights

• Revenue increased by 10.7% year-over-year to €419.2 million; at CER, growth was 11.8%.

• Restated EBITDA rose 34.5% to €64.6 million, with margin up to 15.4% from 12.7% year-over-year.

• Operating income grew to €30.3 million (7.2% of revenue) from €10.3 million (2.7%).

• Net debt/EBITDA ratio improved to 3.2 from 3.5 a year earlier.

• Dividend of €0.50 per share paid in July 2024.

Outlook and guidance

• Revenue growth guidance raised to above 9% (previously >8%) for 2024 at like-for-like and CER.

• Restated EBITDA margin expected to remain above 2021 levels (14.4%).

• Free cash flow expected to turn positive by year-end 2024.

• Focus on expanding MRI franchise, growing vascular embolization, and commercializing new AI solutions.