KME Group (KME) H1 2024 earnings summary

Executive summary

• Demand reduction in key sectors persisted in H1 2024, with a 38% drop in quantities sold year-over-year, impacting results versus an exceptionally strong H1 2023.

• Strategic actions and market positioning helped mitigate negative trends.

• Focus shifted to acquisitions to recover sales volumes, delaying delisting and merger plans to H2 2025.

• The copper sector remains central, with ongoing rationalization and external growth strategies.

• Group equity declined to €310.3m at 30 June 2024 from €358.8m at end-2023, with net financial debt at €355.2m, down from €369.3m.

Financial highlights

• Consolidated revenues fell 26.6% to €795.1m (H1 2023: €1,083.4m); net of raw materials, revenues fell 23.6%.

• EBITDA dropped 47.1% to €54.4m (H1 2023: €102.9m); EBIT down 64.0% to €27.4m; EBIT for KME SE was €32.1m.

• Net loss of €31.2m (H1 2023: profit of €21.2m); EPS at -€0.1351 (H1 2023: €0.0573).

• Net financial debt at €355.2m (Dec 2023: €369.3m).

• Equity decreased to €310.3m (Dec 2023: €358.8m).

Outlook and guidance

• Market demand weakness expected to persist through 2024, with recovery anticipated from early 2025.

• Potential disposals of non-core assets could positively impact debt.