Viohalco (VIO) H1 2024 earnings summary

Executive summary

• Delivered robust profitability growth in H1 2024 despite challenging macroeconomic conditions in European manufacturing and construction, leveraging product mix optimization and cost control, with strong performance in cables and steel pipes and resilience in copper, aluminium, and real estate.

• Cables and steel pipes segments drove profit growth through high-margin projects and record order backlogs.

• Real estate division achieved strong rental revenue growth, supported by active asset management and new leases.

Financial highlights

• Consolidated revenue declined to EUR 3.25 billion (H1 2023: EUR 3.36 billion), mainly due to weak demand in European manufacturing and construction, except for cables.

• a-EBITDA rose to EUR 273 million (H1 2023: EUR 268.7 million), reflecting margin improvements in cables and steel pipes.

• Profit before tax increased to EUR 112 million (H1 2023: EUR 60.5 million), with net profit after tax and minorities at EUR 68.9 million; EPS at EUR 0.266 (H1 2023: EUR 0.141).

• Net finance cost decreased to EUR 85.1 million (H1 2023: EUR 89.3 million) due to lower average debt.

• Net debt increased by EUR 55 million to EUR 1.93 billion, mainly due to working capital seasonality.

Outlook and guidance

• Macroeconomic headwinds and subdued demand in key markets expected to persist short-term.

• Strategic initiatives in product mix, operational efficiency, and expansion into new markets position the group for continued value creation and resilience.

• Growth prospects supported by global energy transition, net-zero, and circular economy trends, with positive medium-term outlook for cables and steel pipes.