Tessenderlo Group (TESB) H1 2024 earnings summary

Executive summary

• Revenue declined 14.6% year-over-year to €1,389.1 million, with profit for the period down 26.3% to €61.4 million.

• Adjusted EBITDA fell 26.5% to €150.7 million, and Adjusted EBIT dropped 51.8% to €51.5 million.

• Net cash position improved to €32.6 million by June 2024, up from €13.3 million a year earlier.

• New executive committee formed in January 2024, with appointments of a new CFO and CTO.

• Major investments announced, including €35 million for ferric chloride production in France, and new plants in the Netherlands and US nearing completion.

Financial highlights

• Revenue for H1 2024 at €1,389.1 million (–14.6% YoY); Adjusted EBITDA at €150.7 million (–26.5% YoY); Adjusted EBIT at €51.5 million (–51.8% YoY).

• Net profit at €61.4 million, down from €83.4 million in H1 2023.

• Net cash position: €32.6 million; cash flow from operating activities increased to €172.5 million (+59.8% YoY).

• Capital expenditures totaled €75.4 million, focused on new plants and split between growth and maintenance.

• Net finance result was +€15.7 million, mainly from FX gains and investment sales.

Segment performance

• Agro: Revenue up 3.5% to €459.2 million; Adjusted EBITDA up 36.8% to €59.5 million; margin improved to 13%.

• Bio-valorization: Revenue down 14.4% to €323.1 million; Adjusted EBITDA down 57.7% to €14.7 million; margin fell to 4.6%.

• Industrial Solutions: Revenue down 9.3% to €348.9 million; Adjusted EBITDA down 31.3% to €36.3 million.

• Machines & Technologies: Revenue down 42% to €223.1 million; Adjusted EBITDA down 71.8% to €12.8 million.

• T-Power: Revenue down 5.3% to €36.6 million; Adjusted EBITDA down 4.5% to €27.4 million; margin stable at 74.9%.