Thermador Groupe (THEP) H1 2024 earnings summary

Executive summary

• Half-year turnover declined 16.1% year-over-year to €271.5 million, marking the most challenging period in 25 years, with all major business segments experiencing sales drops and no improvement in Q2.

• Operating profit dropped 27.8% to €34.1 million and net profit declined 26.6% to €25.3 million compared to H1 2023.

• Both retail and professional channels experienced double-digit revenue declines, with retail down 17.9% and professional down 15.7%.

• Despite the downturn, the group maintained a robust financial structure, with net cash exceeding bank debt and equity at €365 million, and remains committed to its long-term development strategy and workforce retention.

• Acquisitions and share buyback initiatives, including Compteur-energie.com and 17,041 shares in July, signal confidence in long-term prospects.

Financial highlights

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

• Operating margin decreased to 12.6% from 14.6% in H1 2023.

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

• Net cash position of €47.7 million exceeds bank debt of €33 million; equity stands at €365 million.

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

Outlook and guidance

• No significant recovery expected in 2024 for energy renovation or new housing; slight upturn possible from September, with July revenue trend at -13% year-over-year.

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

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

• Maintains confidence in business model and intends to uphold dividend policy despite lower earnings.