Ringmetall (HP3A) H1 2024 earnings summary

Executive summary

• Revenue declined 9.7% year-over-year to €90.8 million in H1 2024, mainly due to the sale of the Industrial Handling segment and lower raw material prices; adjusted for the HSM divestiture, the decrease was 1.6%.

• EBITDA rose 61.7% to €13.4 million, reflecting improved cost structures, margin expansion, and the absence of prior-year one-off effects from the HSM sale; adjusted for divestitures, EBITDA rose by about 4%.

• EBITDA margin increased by 6.6 percentage points to nearly 15%, reaching the upper end of long-term guidance.

• Net profit increased sharply to €6.6 million from €1.5 million in H1 2023, with EPS at €0.22 versus €0.04.

• The company now operates solely in the Industrial Packaging segment after closing the Industrial Handling division in June 2023.

Financial highlights

• Gross profit margin improved to 53.3% from 48.4% year-over-year, aided by lower raw material costs.

• Total assets increased to €146.4 million, up 10.9% from December 2023, mainly due to higher trade receivables.

• Equity rose to €83.5 million, with an equity ratio of 57.0%.

• Cash and cash equivalents grew to €9.8 million, up from €6.8 million at year-end.

• Average headcount decreased to 840 from 885, reflecting the segment sale.

Outlook and guidance

• 2024 revenue guidance narrowed to €170–185 million (previously €170–195 million), with expectations toward the lower end due to continued steel and raw material price declines.

• EBITDA guidance is €22–27 million, reflecting high profitability and stable volumes; previous range was €20–27 million.

• Guidance assumes stable raw material prices and exchange rates; excludes effects of planned acquisitions.

• Ongoing M&A activity with confidence in closing at least one or two acquisitions by year-end; combined target revenues for potential acquisitions estimated at €30–60 million annually.