Llorente & Cuenca (LLYC) H2 2023 earnings summary

Executive summary

• Surpassed €100 million in total revenue for the first time, reaching €101.4 million, a 13.3% increase year-over-year.

• Operating revenue grew 14.3% to €83.1 million, and recurring EBITDA rose 15.6% to €18.5 million.

• Net profit increased 24.3% to €9.2 million compared to the previous year.

• Workforce expanded by 5% to 1,181 professionals, with a focus on talent development and diversity.

• Achieved significant milestones in innovation, diversity, and sustainability, reinforcing leadership in Corporate Affairs and Marketing.

Financial highlights

• Total revenue: €101.4 million (+13.3% YoY); operating revenue: €83.1 million (+14.3% YoY).

• Recurring EBITDA: €18.5 million (+15.6% YoY); net profit: €9.2 million (+24.3% YoY).

• EBITDA margin reached 22%, maintaining high profitability despite industry margin pressures.

• Cash balance at year-end was €10.7 million, with net debt at €0.8 million.

• Europe contributed 33% of operational revenue and 37.7% of EBITDA; Deep Digital 34.5% and 28%; Latin America 24.1% and 23.5%; U.S. 8.4% and 10.8%.

Outlook and guidance

• Expressed optimism and confidence in continued industry leadership and transformation.

• Plans to invest €3 million in R&D and innovation from 2023 to 2025, focusing on data-based solutions.

• Targeting 15 new venture investments with €5 million allocated by 2026.

• Positioned to pursue growth targets outlined in the 2023/2025 strategic plan.

• Strong financial footing and low indebtedness enable favorable terms for future expansion.