Tessenderlo Group (TESB) H2 2023 earnings summary

Executive summary

• 2023 revenue was €2,928.3m, up 13.2% reported but down 11.8% Pro Forma; Adjusted EBITDA fell 26.7% reported and 31.8% Pro Forma to €318.7m.

• Profit for the period fell to €114.4m from €226.8m; operating cash flow rose to €219.2m, and year-end net cash was €10.1m versus €59.5m net debt in 2022.

Financial highlights

• 2H23 revenue was €1,301.8m, up 4.3% reported but down 19.4% versus 2H22 Pro Forma; 2H Adjusted EBITDA fell 39.3% to €113.6m.

• Adjusted EBIT was €120.1m versus €271.3m Pro Forma; gross profit was €558.2m versus €721.9m Pro Forma, and EBIT was €120.6m versus €249.4m Pro Forma.

• Basic and diluted EPS were both €1.74 versus €5.26; total comprehensive income was €87.4m, down 67.4%.

• Capital expenditure rose to €178.5m from €113.4m; the Adjusted EBITDA bridge was €434.8m in 2022, FX -€6.0m, scope +€50.4m, internal growth -€160.5m, and €318.7m in 2023.

Outlook and guidance

• 2024 Adjusted EBITDA is expected to be in line with 2023’s €318.7m, based on currently available information.

• The outlook reflects continued high economic uncertainty and a volatile geopolitical, economic and financial environment.