Lumibird (LBIRD) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €98.0M, up 1% year-over-year, with Medical stable and Photonics slightly growing at +2.8%, though activity was below expectations and down -2% at constant scope.

• EBITDA declined 21% to €10.9M (11.2% margin), mainly due to margin pressure in Photonics and integration of loss-making Convergent.

• Net income was slightly negative at -€0.1M, compared to €0.5M in H1 2023.

• Medical division improved profitability through higher gross margin and cost control, while Photonics faced operational challenges.

• Amicable settlement of the Ulis site dispute resulted in a €0.8M indemnity, positively impacting operating results.

Financial highlights

• Gross margin decreased to 60.7% (down from 62.6%); Medical at 61.4%, Photonics at 59.9%.

• Operating income (ROC) dropped to €1.6M reported, €4.2M excluding Convergent.

• Net financial debt increased to €90.0M, with €63.9M in cash and equivalents.

• Capex for H1 2024 was €14.0M, with R&D investments at €6.1M.

• Operating cash flow improved to €14.8M, driven by positive working capital change.

Outlook and guidance

• 2024-2026 guidance maintained: revenue CAGR >8%, EBITDA margin improvement of 500bps by 2026.

• 2024 expected to show Medical growth (>8%) and stable or slightly growing Photonics (>2%), with overall revenue growth >5% and EBITDA margin >16%.

• Convergent integration to weigh on 2024 EBITDA, with recovery expected in subsequent years; Convergent expected to post €5.5–6M revenue and -€3.5 to -€4M EBITDA for 2024.