Interroll (INRN) H1 2024 earnings summary

Executive summary

• Order intake bottomed in Q4 2023 and was CHF 286.5 million in H1 2024, down 5.1% year-over-year, with a rebound in product sales partially offsetting the absence of large projects; EMEA and Americas improved, while APAC remained mixed.

• Market share remains stable at 8%-11% in a CHF 6-8 billion niche of the material handling equipment market, serving 28,000 customers across 35 companies and 16 factories worldwide.

• Emphasis on modular, scalable platform products and innovation, including the launch of new vertical crossbelt and small wheel sorters at LogiMAT 2024.

• Acquisition of the agent in India signed on July 31, 2024, expanding presence in Asia.

• Free cash flow dropped to CHF 11.1 million from CHF 60.0 million, mainly due to higher net working capital.

Financial highlights

• Order intake decreased by 5.1% year-over-year (down 1% in local currency), with foreign exchange having a strong negative impact.

• Sales declined by 3.5% to CHF 247.4 million; flat in local currency (+0.1%).

• EBIT increased by 4% to CHF 29.9 million, mainly due to favorable raw material prices and cost discipline; margin at 12.1%.

• EBITDA rose 2.8% to CHF 41.0 million; EBITDA margin improved from 15.6% to 16.6%.

• Net result grew 8.5% to CHF 23.9 million; result margin at 9.7% (vs. 8.6%).

Outlook and guidance

• Expectation for the next six months is stable, with no strong rebound; EMEA shows signs of recovery, Americas expected to continue growth, and APAC to recover more slowly.

• Medium- and long-term trends for automation and material flow solutions remain strong.

• H2 2024 expected to be better than H1 due to seasonality, but not as strong as H2 2023.

• Well positioned to meet future market demands with innovative platforms and production capacity.