Jacquet Metals (JCQ) H1 2024 earnings summary

Executive summary

• H1 2024 was marked by low demand and strong price pressure, with sales down 15.5% year-over-year to €1,074m and gross margin at 20.9% of sales, down from 22.4% in H1 2023.

• EBITDA fell to €39m (3.6% of sales) from €100m (7.9%) in H1 2023, and net income (Group share) dropped to €3.6m.

• Operating cash flow remained strong at €136m, and gearing improved to 20.7% from 31% at 2023 year-end.

• The group continued its external growth strategy, acquiring COMMERCIALE FOND SpA in Italy and expanding its distribution network.

• Capital expenditure totaled €28m, including acquisition-related investments and a new site in Bologna.

Financial highlights

• Sales declined 15.5% year-over-year to €1,074m, mainly due to lower volumes and price effects.

• Gross margin was €225m (20.9% of sales), down from €285m (22.4%) in H1 2023.

• Adjusted operating income dropped to €18m (1.7% of sales) from €84m (6.6%).

• Net income (Group share) was €3.6m, with EPS at €0.16, down from €2.17 in H1 2023.

• Operating cash flow was €136m, and net debt stood at €140m as of June 30, 2024.

Outlook and guidance

• Market conditions remain challenging, with Q3 2024 sales anticipated to be significantly lower than Q3 2023.

• The group is focusing on operational efficiency, working capital, and cost management while continuing selective investments.