Mutares (MUX) Q2 2024 earnings summary

Executive summary

• Revenues increased to EUR 2,610.4 million in H1 2024, up 15% year-over-year, driven by high M&A activity and international expansion, including new offices in India, China, and the US.

• Eleven acquisitions and five exits were completed or signed, with major transactions such as Frigoscandia and expansion into new markets.

• Net income at the Holding level reached EUR 53 million, mainly due to the Frigoscandia exit, but consolidated net income turned negative at EUR -175.7 million due to lower bargain purchase gains and higher restructuring costs.

• Adjusted EBITDA was EUR 15.7 million, down from EUR 41.2 million in H1 2023, reflecting losses from new acquisitions and challenging market conditions.

• Dividend for FY 2023 increased to EUR 2.25 per share, confirming a strong dividend policy.

Financial highlights

• Group revenues rose to EUR 2,610.4 million in H1 2024 from EUR 2,273.6 million in H1 2023.

• Group EBITDA was EUR 71.6 million, down from EUR 405.4 million in H1 2023, mainly due to lower bargain purchase gains.

• Adjusted EBITDA was EUR 15.7 million, compared to EUR 41.2 million in H1 2023.

• Holding net income reached EUR 53 million, up from EUR 13.2 million year-over-year, but consolidated net income was negative.

• Total assets stood at EUR 4,356.0 million as of June 30, 2024.

Outlook and guidance

• FY 2024 revenue guidance is EUR 5.7–6.3 billion, with net income guidance for the Holding at EUR 108–132 million.

• Adjusted EBITDA is expected to improve significantly in 2024, driven by restructuring and profitability gains.

• Long-term targets include EUR 10 billion turnover and at least 2% profitability by 2028.

• Dividend-paying ability is expected to be maintained at least at market expectation.

• Ongoing focus on growth in turnover, profitability, geographic footprint, and operational excellence.