Mincon Group (MCON) H1 2024 earnings summary

Executive summary

• H1 2024 saw revenue decline 16% year-over-year to €68.0 million, with gross margin and EBITDA down significantly due to industry-wide slowdowns in construction and mining.

• Cost inflation, reduced demand, and price competition impacted margins, but operational efficiency initiatives, including automation and cost-cutting, are underway.

• Inventory reduction and diversification advanced, notably in subsea and Greenhammer projects.

• Regional performance varied: Americas and Europe & Middle East saw declines, while Australia Pacific showed revenue recovery and project wins.

• Recovery is anticipated in H2 2024, supported by increasing order books and large project wins.

Financial highlights

• H1 2024 revenue: €68.0 million (down from €80.6 million in H1 2023); gross margin fell to 25.5% from 31.8%.

• EBITDA dropped 61% to €4.7 million, with EBITDA margin at 7.1% versus 15.1% in H1 2023.

• Profit after tax was a loss of €0.98 million, compared to a profit of €4.9 million in H1 2023.

• Operating profit: €0.2 million (H1 2023: €7.8 million); basic EPS: (0.46c) vs. 2.31c in H1 2023.

• Cash reserves strengthened by over €1 million due to inventory reduction.

Outlook and guidance

• Order book recovery in late Q2 and post-period end expected to drive revenue and margin improvement in H2 2024.

• Operational cost reductions and automation are expected to yield benefits in H2 2024.

• Less capex required in H2 2024 and 2025 as factories are well invested; focus remains on working capital management.

• Continued product innovation and progress on Greenhammer and subsea projects to diversify revenue streams.

• Board remains confident in returning to revenue and margin growth in H2 2024 versus H1.