Hera (HER) Q2 2024 earnings summary

Executive summary

• H1 2024 saw strong operating and financial performance, with EBITDA up 2% to €732.7–733 million and net profit rising 16.4% to €218–218.4 million, maintaining momentum from Q1 and aligning with business plan targets.

• Revenues declined by 32.7–33.3% year-over-year to €5,536.8–5,785 million, mainly due to lower energy prices, reduced trading, and decreased energy efficiency incentives.

• Investments remained robust, with gross operating investments up 8.2% to €344.4 million and net operating investments up 7% to €327.7 million.

• The Group reinforced its Net Zero 2050 target, advancing decarbonization and ESG initiatives.

• All business areas contributed to growth, with significant expansion in the energy customer base and successful integration of acquisitions.

Financial highlights

• EBITDA: €732.7–733 million (+2% year-over-year); EBIT: €385–385.1 million (+2.8%).

• Net profit attributable to shareholders: €218–218.4 million (+16.4%); net income: €237.3 million (+14.1%).

• EPS at €0.152, down from €0.175 in H1 2023 due to higher share count.

• Operating cash flow: €536 million in H1, up 17% year-over-year.

• Dividend per share increased by 12% to €0.14, with a yield above 4%.

Outlook and guidance

• Results are in line or ahead of the business plan, with a positive outlook for H2 2024 and continued growth in regulated businesses.

• Net Zero 2050 target confirmed, with ongoing investments in decarbonization and innovation.

• Net debt expected to remain stable around €4.06–4.15 billion by year-end, with financial flexibility supported by undrawn credit lines.

• Over 1 million new customers from the end of the protected electricity market will impact H2 2024 results.