Synergie (SDG) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1.6 billion, up 2.9% year-over-year, with international growth and sector diversification offsetting market headwinds.

• EBITDA declined 16.5% to €63.3 million, and EBITA fell 20.8% to €50.4 million, reflecting a challenging economic environment and ongoing transformation.

• Net profit dropped 23.1% to €31.7 million compared to H1 2023.

• International operations contributed 59% of total revenue, with strong growth in Southern, Northern, and Eastern Europe.

• Acquisition of IPA in Australia doubled presence in the region, targeting AUD 200 million proforma revenue for 2024.

Financial highlights

• Revenue increased by €44.4 million (+2.9%) year-over-year, with organic growth of 1.6%.

• EBITDA margin was 4.1% (down from 5.0%), and EBITA margin was 3.2% (down from 4.2%).

• Cash flow from operating activities reached €47.1 million, and closing cash position was €396.2 million.

• Shareholders' equity stood at €690.3 million as of June 30, 2024, strengthening the financial structure.

• Net cash position (net of debt) was €313 million, up from €280 million at end-2023.

Outlook and guidance

• Expects higher revenues in H2 2024, driven by diversification and international expansion.

• Remains cautious about improving operational profitability amid ongoing market challenges.

• Focus on market share gains, digital transformation, and sector/country diversification.

• Continued expansion through organic growth and targeted acquisitions in France and abroad.

• Cost control plan implemented to protect earnings.