WABERER'S INTERNATIONAL (3WB) Q2 2024 earnings summary

Executive summary

• Achieved 10.2% consolidated revenue growth to EUR 388.5 million in H1 2024, driven by higher-margin segments, especially RCL.

• H1 EBIT reached EUR 19.2 million, with Q2 EBIT at EUR 10.7 million, the highest in the last four quarters, though H1 EBIT was down year-over-year due to one-off positive effects in H1 2023.

• Strategic acquisitions and projects (MDI, PSP, Ecser warehouse, Hungarian Post Insurers) are expected to add EUR 10–15 million annualized EBIT.

• Annual EBIT forecast remains unchanged at EUR 40+ million, in line with last year's record.

• RCL segment delivered record EBIT and strong growth from new customer acquisitions and the MDI acquisition in Serbia.

Financial highlights

• Group revenue increased by 10.2% year-over-year to EUR 388.5 million for H1 2024.

• Group EBIT for H1 2024 was EUR 19.2 million, down 24.5% year-over-year due to prior period one-offs.

• Net income declined to EUR 7.0 million in H1 2024 from EUR 25.5 million in H1 2023, mainly due to non-cash FX effects and higher taxes.

• EBITDA margin for H1 2024 was 12.2%, down 2.3pp year-over-year; EBIT margin was 5.0%, down 2.2pp.

• Net financial indebtedness at EUR 228.8 million, up EUR 14.7 million from year-end 2023; net leverage ratio at 2.5x.

Outlook and guidance

• Annual EBIT expectation for 2024 is EUR 40+ million, similar to 2023.

• Revenue guidance revised to EUR 750–800 million due to equity method consolidation of new acquisitions.

• Q3 and Q4 results are expected to be on par with 2023 levels.

• Strategic projects closed in H1 2024 are expected to contribute EUR 10–15 million in annualized EBIT.

• ITS segment expected to match H2 2023 profitability in H2 2024.