Knaus Tabbert (KTA) Q2 2024 earnings summary

Executive summary

• H1 revenue declined 7.3% to €699.4m; adjusted EBITDA was €67.5m and margin improved to 9.6% from 9.2% year over year.

• Order backlog fell 61.5% year over year to €467m by June 30, while end-customer demand remained solid.

• Higher dealer financing costs drove inventory reductions, temporary production adjustments and lower FY24 guidance.

Financial highlights

• H1 revenue was €699.4m versus €754.2m in H1 2023; Q2 revenue was €322.7m, down 16.3% year over year.

• Adjusted EBITDA was €67.5m, down 3.2%; adjusted EBIT was €51.1m, down 10.4%.

• Operating cash flow was €25.5m and free cash flow was €12.3m; working capital reduced cash flow by €21.3m.

• Raw-material and supplies inventories fell by more than €70m; net income was €30.9m.

Outlook and guidance

• FY24 revenue guidance was reduced to €1.3bn–€1.4bn from €1.4bn–€1.55bn; adjusted EBITDA margin guidance fell to 7%–8% from 8%–9%.

• Q3 sales were expected to slow amid an extended summer factory closure, with a stronger Q4 expected.

• CapEx was expected at the lower end of the €40m–€50m range, with some premium and Morelo investments shifted to 2025.

• Dealers placed 6,514 new orders in June and July; ordering remained below the usual early attainment of annual targets.