Thermador Groupe (THEP) H1 2024 earnings summary

Executive summary

• Sales declined 16.1% year-over-year in H1 2024 to €271.5m, marking one of the most challenging periods in 25 years, with both retail and professional channels experiencing double-digit declines.

• Operating profit dropped 27.8% to €34.1m and net profit decreased 26.6% to €25.3m year-over-year.

• Workforce levels stabilized at 797 employees after post-COVID expansion.

• Despite the downturn, the group maintained a robust financial structure, with net cash exceeding bank debt and equity at €365m.

• Acquisitions included 100% of Axelair and an agreement to acquire Compteur-energie.com and affiliates for €3.485m, to be consolidated from July.

Financial highlights

• Gross margin improved to 36.08% from 34.86% year-over-year, despite lower sales.

• Operating profit margin decreased to 12.55% (vs. 14.58% in H1 2023); net profit margin was 9.32%.

• Free cash flow reached €38.4m, supporting dividend payments of €19.1m–€19.3m and loan repayments.

• Net cash position of €47.7m, with bank debt at €33m and equity at €365m.

• Stock value declined 6.2%; working capital requirement at 40.1% of sales.

Outlook and guidance

• Recovery is slower than anticipated; negative sales trends continued into July with an estimated -13%, and no significant recovery expected in 2024 for energy renovation or new housing.

• Regulatory changes in energy renovation subsidies (MaPrimeRénov') led to a €20m sales impact in H1.

• Long-term goal remains 7% annual sales growth over 10 years, with confidence in achieving the plan and maintaining dividend policy.

• Forecasts a negative price effect of 3% for 2024; expects stabilization of public support measures by January 2025.