Serge Ferrari Group (SEFER) H2 2024 earnings summary

Executive summary

• Revenue for 2024 reached €323.6M, a decrease of 1.2% year-over-year, with a recovery in activity and volumes in the second half after a cautious first quarter.

• Adjusted EBIT rose 11.5% to €12.3M, and current operating income (ROC) increased 1.9% to €10.6M, reflecting operational profitability despite a challenging environment.

• Net income turned negative at -€15.2M, significantly impacted by nearly €11M in exceptional restructuring costs and tax effects.

• The Transform 2025 plan drove cost optimization, restructuring, and operational improvements, with full deployment and expected benefits in 2025.

• Cash flow from operations improved, and net debt was well managed, with leverage ratios in line with covenants.

Financial highlights

• Revenue: €323.6M in 2024, down 1.2% from €327.6M in 2023, with a 6.5% sales increase in H2 at constant scope and currency.

• Gross margin: €159.2M (49.2% of sales), slightly down from €161.9M (49.4%) in 2023.

• Adjusted EBIT: €12.3M (+11.5% year-over-year); current operating income: €10.6M (+1.9%).

• Net result: -€15.2M, impacted by nearly €11M in restructuring costs and tax effects.

• OPEX decreased by 0.9%, with personnel costs and external charges both reduced.

Outlook and guidance

• 2025 strategy focuses on protecting profitability amid inflationary pressures on key raw materials.

• Continued operational efficiency improvements and further reduction of fixed costs in favor of variable costs.

• The group will adapt pricing to address raw material inflation and capitalize on resumed activity.

• Expected full-year benefit from Transform 2025 actions starting in 2025.

• Maintains ambitions despite geopolitical uncertainties, leveraging favorable market conditions.