KME Group (KME) H1 2024 earnings summary

Executive summary

• Group equity at June 30, 2024, was €310.3M, down from €358.8M at end-2023, with net financial debt at €355.2M, improved from €369.3M at end-2023.

• H1 2024 saw a 38% drop in sales volumes versus H1 2023, reflecting continued weak demand in core sectors.

• Revenue for H1 2024 was €795.1M (vs €1,083.4M in H1 2023), EBITDA €54.4M (vs €102.9M), and net loss €31.2M (vs net profit €21.2M in H1 2023).

Financial highlights

• Consolidated revenue fell 27% year-over-year to €795.1M; EBITDA margin dropped to 19.6% from 28.6%.

• EBIT was €27.4M (down from €76.2M); net loss attributable to shareholders was €29.0M.

• Net financial debt improved to €355.2M from €369.3M at end-2023.

• Group equity decreased to €310.3M from €358.8M at end-2023.

• Inventory and contract revaluation (IFRS) had a negative impact of €18.5M.

Outlook and guidance

• Market weakness is expected to persist through 2024, with a possible recovery in demand anticipated at the start of 2025.

• The group may benefit from divestments of non-core copper assets, which could reduce debt.