Sto SE & Co (STO3) Q2 2024 earnings summary

Executive summary

• Group turnover declined 7.1% year-over-year to €795.7 million in H1 2024, impacted by weak construction markets and adverse weather, especially in Germany and Western Europe.

• EBIT dropped 49.7% to €29.3 million and EBT fell 47.7% to €30.3 million, with EBT margin down to 3.8% from 6.8%.

• Workforce remained stable at 5,784 employees at the end of June 2024.

Financial highlights

• Revenue: €795.7 million (down from €856.3 million year-over-year).

• EBITDA: €61.6 million (down 30.6% year-over-year).

• EBIT: €29.3 million (down 49.7% year-over-year).

• EBT: €30.3 million (down 47.7% year-over-year).

• Earnings per share: €3.21 (preference), €3.15 (ordinary), both down by about 50%.

• Gross margin improved to 54.1% from 52.8%.

• Cash flow from operating activities: €-4.9 million (prior year: €33.1 million).

• Net financial assets at mid-year: €78.3 million (down from €119.7 million at year-end 2023).

Outlook and guidance

• 2024 turnover forecast revised down to €1.66 billion (prior: €1.79 billion; 2023: €1.72 billion).

• EBIT expected between €62–82 million (prior: €113–138 million; 2023: €126.5 million).

• EBT expected between €63–83 million (prior: €113–138 million; 2023: €127.4 million).

• Return on sales (EBT) forecast at 3.8–5.0% (prior: 6.3–7.8%; 2023: 7.4%).

• ROCE expected at 8.1–10.9% (prior: 14.5–17.8%; 2023: 17.1%).

• Investment volume for 2024 now expected at €40 million (original: €50 million) due to project delays.

• Medium-term targets for 2025 and 2027 (turnover and EBT margin) are not expected to be achieved.