Irish Continental Group (ICGC) H1 2024 earnings summary

Executive summary

• Revenue grew 8.1% year-over-year to €285.5m in H1 2024, with strong performance in the Ferries Division and moderate growth in Container & Terminal Division.

• EBITDA increased 1.4% to €49.7m; operating profit rose 7.4% to €17.4m; adjusted basic EPS up 11.3% to 7.9c.

• Net debt increased to €211.7m at 30 June 2024, mainly due to the Oscar Wilde vessel addition.

• Interim dividend of 5.11c per share declared, up 5% year-over-year.

• Space sharing agreement with P&O Ferries on Dover-Calais route operational for freight, with phased passenger rollout.

Financial highlights

• Ferries Division revenue up 9.9% to €197.6m; Container & Terminal Division revenue up 1.7% to €103.2m.

• Group operating profit rose 7.4% to €17.4m; profit before tax €14.6m (+4.3%); basic EPS up 10.7% to 8.3c.

• Free cash flow after strategic capex was €41.5m; net cash flows for H1 2024 were €14.4m.

• Fuel costs increased 2.2% to €50.1m, representing 21% of operating costs.

• Gross cash balances at €51.2m; net debt (pre-IFRS 16) at €98.4m.

Outlook and guidance

• Car volumes up 13.4% and RoRo freight units up 8.9% year-to-date, with continued strong trading into H2 2024.

• Container & Terminal Division expects some rate and profitability recovery in H2 2024 and into 2025.

• Space charter agreement and Oscar Wilde vessel expected to support further growth.

• EU ETS surcharges implemented and passed to customers; further regulatory changes expected in 2025 and 2026.