ViaCon Group (VIACON) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales declined by 7.7% year-over-year to EUR 46.2 million, with organic growth at -5.9% and EBIT margin falling to 1.0% from 5.2% last year.

• Order intake rose 2.2% in Q2, driven by Bridges & Culverts Solutions, while GeoTechnical and StormWater Solutions saw weaker demand.

• Macroeconomic uncertainty and geopolitical challenges continue to impact sales and earnings, but underlying demand for sustainable infrastructure remains robust.

• Initiatives to strengthen competitiveness and efficiency have been launched, targeting both growth and cost measures.

• Turkey delivered all-time high revenue in H1 2024, driven by infrastructure demand post-earthquake and market share gains over concrete.

Financial highlights

• Q2 EBITDA was EUR 3.1 million, down from EUR 5.4 million last year; Q2 EBITDA margin was 5.0% (8.3% last year); underlying EBITDA margin was 6.7% (10.8%).

• Q2 2024 EBIT was EUR 463 thousand (EUR 2,603 thousand in Q2 2023); adjusted EBIT was EUR 1,233 thousand (EUR 3,850 thousand).

• H1 2024 net sales were EUR 79.1 million, down 1.8% year-over-year; H1 2024 net loss after tax was EUR -8.8 million (EUR -10.4 million last year).

• Cash flow from operating activities was -4.2% in Q2, compared to -2.4% last year; H1 improved to EUR -7.1 million (EUR -10.5 million last year).

• Net debt at end of June was EUR 103.4 million (EUR 91.9 million excluding lease liabilities); cash and equivalents stood at EUR 19.5 million.

Outlook and guidance

• Gradual market improvement is expected in H2 2024 and into 2025, but volatility and cautious customer behavior may persist.

• No full-year forecast provided; management expects a small positive trend change but remains cautious.

• Infrastructure investments in Poland are anticipated to resume later in 2024 and accelerate in 2025 as EU funds become available.

• Efficiency measures and competitiveness initiatives are expected to help manage ongoing market volatility.

• Strategic focus remains on growing Bridges & Culverts, improving GeoTechnical profitability, and building StormWater Solutions.