LACROIX Group (LACR) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was €350.3m, down 7.0% year-over-year, reflecting divestitures, a strong comparison base, and portfolio changes.

• Net loss reached €16.9m, impacted by a €10.0m impairment on City-Mobility and other non-recurring items; City-Mobility was reclassified as discontinued.

• Strategic refocus on Electronics and Environment, with divestment of non-core segments including Road Sign BU and City-Mobility.

• Results were resilient despite headwinds, with significant impact from North America and non-recurring events.

• Adjusted/recurring EBITDA for continuing operations was €18.3m (5.2% margin), down from €23.6m (6.3%) in H1 2023.

Financial highlights

• Operating profit fell to €4.5m from €11.5m year-over-year, mainly due to non-recurring charges.

• Net income from continued activities was -€2.9m; consolidated net income was -€16.9m, impacted by impairment and discontinued operations.

• Free cash flow remained positive at €0.9m, supported by controlled working capital and capex.

• Shareholders’ equity declined to €171m, with a gearing ratio of 73%.

• Cash and cash equivalents at €29.9m as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue expected at €640m (excluding City-Mobility), with EBITDA margin guidance revised to 4.0–4.5%.

• Environment segment expected to maintain positive momentum; Electronics to benefit from a more favorable base but faces limited visibility in Automotive and HBAS.

• North America turnaround ongoing, with EBITDA normalization targeted for 2026.

• New 2025–2027 roadmap to be unveiled in spring 2025.

• City-Mobility segment disposal expected within 12 months; impairment may be revised at year-end.