Intercos (ICOS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 with Adjusted EBITDA of €43.2M (+15% YoY) and net sales of €278.9M (+9.9% YoY), offsetting Q1 cyber attack impacts.

• H1 2024 net sales reached €499.9M (+2.4% YoY); Adjusted EBITDA was €64.0M (–5% YoY), with net profit at €17.9M (–28.5% YoY) and adjusted net profit at €22.9M (–14.9% YoY), mainly due to Q1 disruption and higher D&A and taxes.

• Order book at end of June 2024 up 13% YoY, with strong order intake and increased exposure to prestige customers.

• Awarded EcoVadis Platinum medal for ESG for third consecutive year, ranking in the top 1% of the sector.

• Expansion underway in Korea and China, with new commercial/research presence in India to capture future growth.

Financial highlights

• Q2 net sales: €278.9M (+9.9% YoY); H1 net sales: €499.9M (+2.4% YoY); Q2 Adjusted EBITDA: €43.2M (+15% YoY, margin 15.5%).

• H1 Adjusted EBITDA margin: 12.8% (down 99bps YoY); H1 gross margin: 20.0% (down 67bps YoY).

• H1 net income: €17.9M (–28.5% YoY); H1 Adjusted net income: €22.9M (–14.9% YoY).

• H1 operating cash flow: €23.2M (+€15.7M YoY); net financial debt at €114.1M, improved by €8.6M YoY; leverage ratio at 0.85x.

• Investments in tangible and intangible assets: €23.8M in H1 2024.

Outlook and guidance

• FY2024 sales expected to grow 6–8% vs. 2023; H2 sales forecasted to rise 10–13% YoY, outpacing global beauty market.

• Order book at June 2024 up 13% YoY, with continued strong order intake and increased prestige customer share.

• EMEA and Asia expected to maintain strong growth; Americas may recover in H2 despite market volatility.

• H2 EBITDA margin expected in the 15–15.5% range, similar to Q2.