Nedap (NEDAP) H1 2024 earnings summary

Executive summary

• Revenue declined 8% year-over-year to €124.1 million in H1 2024, while recurring revenue rose 20% and now represents 39% of total revenue.

• Operating profit dropped 34% to €10.6 million, with net profit down 35% to €8.2 million compared to H1 2023.

• Added value as a percentage of revenue increased to 71%, driven by a higher share of recurring revenue.

• Nedap expects revenue growth in the second half of 2024, despite ongoing market volatility in certain segments.

Financial highlights

• Revenue: €124.1 million (H1 2023: €134.4 million), recurring revenue: €48.7 million (H1 2023: €40.5 million).

• Operating profit: €10.6 million (H1 2023: €16.1 million); operating margin: 8.5% (H1 2023: 12.0%).

• Net profit: €8.2 million (H1 2023: €12.5 million); EPS: €1.24 (H1 2023: €1.91).

• Operating costs increased 1% to €77.5 million, mainly due to higher personnel costs.

• Cash and cash equivalents fell to €1.5 million as of 30 June 2024, mainly due to dividend payments and working capital growth.

Outlook and guidance

• Revenue growth is anticipated for H2 2024 compared to H2 2023, but full-year impact remains uncertain due to livestock market volatility.

• EBIT margin ambition of 15% reiterated, though potentially delayed by one year.