Latécoère (LAT) H1 2024 earnings summary

Executive summary

• Revenue increased by 16% year-over-year to €352.1 million, driven by higher OEM production rates, commercial initiatives, and new business wins, partially offsetting inflationary pressures.

• Recurring EBITDA loss narrowed significantly to €(1.8) million from €(17.6) million in H1 2023, reflecting operational leverage and commercial measures.

• Net result improved to a loss of €(49.3) million versus €(59.6) million in H1 2023.

• Free cash flow from operations was negative at €(40.9) million, impacted by working capital needs, negative EBITDA, and non-recurring costs.

• Cash and cash equivalents stood at €38.8 million; net debt was €183.5 million at period end.

Financial highlights

• Revenue: €352.1 million (+16% year-over-year), up €48.2 million.

• Recurring EBITDA: €(1.8) million, a marked improvement from €(17.6) million in H1 2023.

• Net result: €(49.3) million loss, improved from €(59.6) million loss in H1 2023.

• Operating free cash flow: €(40.9) million.

• Cash and cash equivalents: €38.8 million; net debt: €183.5 million at June 30, 2024.

Outlook and guidance

• FY 2024 expected to see further revenue growth and a significant reduction in EBITDA losses.

• Operational free cash flow anticipated to improve, though partially offset by restructuring costs and increased working capital.

• Continued investment in operations, workforce, and geographic footprint to support growth, competitiveness, and resilience.