Stratec (SBS) Q2 2024 earnings summary

Executive summary

• H1 2024 sales declined 4.9% year-over-year to €119.1 million, but Q2 sales grew 5.3% at constant currency, reflecting improved business dynamics and efficiency measures.

• Adjusted EBIT margin increased by 260 basis points year-over-year to 8.2% for H1 and 9.6% for Q2, driven by cost discipline and operational improvements.

• Major progress in development projects, including a key milestone in transfusion diagnostics and a strong development pipeline.

• 2024 guidance confirmed, expecting stable or slightly growing sales and an adjusted EBIT margin of 10.0% to 12.0%.

• Market conditions are improving, with increased end-customer demand and a positive outlook for investment in new technologies.

Financial highlights

• Adjusted EBITDA rose 24.6% year-over-year to €17.3 million in H1 2024; adjusted EBIT up 39.5% to €9.7 million.

• Adjusted consolidated net income increased 35.0% to €5.5 million; adjusted EPS up 36.4% to €0.45.

• Cash flow from operating activities increased over 340% to €17.4 million in H1 2024, with free cash flow turning positive at €8.6 million versus negative €5 million in H1 2023.

• Equity ratio rose to 51% as of June 30, 2024, mainly due to the Natech acquisition.

• Net debt/LTM EBITDA at 2.7x; cash position at €30.2 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 guidance confirmed, with sales expected to remain stable or grow slightly on a constant-currency basis.

• Adjusted EBIT margin guidance for 2024 is 10.0% to 12.0%.

• Investments in tangible and intangible assets projected at 6–8% of sales.

• H2 is expected to be strong, with Q3 showing high dynamics and Q4 less back-end loaded than previous years.

• Focus remains on cost discipline, operational excellence, M&A, and platform expansion.