Lechwerke (LEC) H1 2024 earnings summary

Executive summary

• Electricity sales declined by 2.7% year-over-year to 3,772 GWh, while gas sales dropped sharply by 64.3% to 340 GWh due to the completed exit from the gas business in the private customer segment.

• Revenue for the first half of 2024 was €616.2 million, down from €811.6 million in the prior year period.

• Net income for the period was €69.4 million, a decrease from €109.5 million year-over-year, mainly due to the absence of prior-year one-off positive effects.

Financial highlights

• Operating result fell to €22.6 million from €55.0 million year-over-year, reflecting the loss of positive one-time portfolio effects.

• Result from financial assets increased by €11.8 million to €99.5 million, driven by higher distributions and positive developments in subsidiaries.

• Cash flow from operating activities was €55.3 million, significantly below the prior year (€120.4 million), impacted by lower operating results and the absence of one-off effects.

• Cash flow from investing activities was -€49.1 million, reflecting investments in fiber optics and renewables, a large loan to a subsidiary, and proceeds from fund sales.

• Equity decreased to €501.9 million due to a €99.2 million dividend payment.

Outlook and guidance

• Electricity sales are expected to remain stable in the second half of 2024, while gas sales will continue to decline due to the gas business exit.

• Investments for the full year are projected to be lower than in 2023.

• Adjusted net income for 2024 is forecasted in the range of €100–120 million, with a dividend payout targeted at the previous year's level, assuming stable conditions.