Mutares (MUX) Q2 2024 earnings summary

Executive summary

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

• Eleven acquisitions and five exits completed, with major deals such as Magirus, Sofinter Group, Serneke, Fischer Automotive, Prinz Kinematics, Temakinho, Greenview Group, and Frigoscandia.

• 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 remained positive but declined to EUR 15.7 million, reflecting losses from new acquisitions and challenging market conditions.

• Dividend increased by 29% to EUR 2.25 per share for FY 2023, confirming a strong dividend policy.

Financial highlights

• Group revenue grew over 15% year-over-year to EUR 2.6 billion in H1 2024.

• 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 remains at EUR 5.7–6.3 billion, with net income guidance for the Holding at EUR 108–132 million.

• Targeting EUR 10 billion turnover and EUR 200 million holding profit by 2028.

• Adjusted EBITDA expected to improve significantly versus 2023, driven by restructuring and profitability gains.

• Attractive dividend policy continues, with a base dividend of EUR 2 and EUR 2.25 paid last year.

• Ongoing exit processes expected to yield further divestments in 2024, possibly as early as Q3.