Wendel (MF) H1 2024 earnings summary

Executive summary

• Fully diluted NAV per share rose 7.9% year-to-date to €175.2, supported by strong Bureau Veritas performance and major asset disposals, including Constantia Flexibles and a 9% stake in Bureau Veritas, generating significant capital gains.

• Net income Group share surged to €388.2 million in H1 2024 from €39.6 million in H1 2023, mainly due to the Constantia Flexibles sale.

• Strategic transformation advanced with the acquisition of 51% of IK Partners and a commitment to invest €625 million in Globeducate.

• Ordinary dividend of €4 per share paid in May 2024 (+25% YoY), with a yield of 4.8% on share price, and €100 million share buyback completed, with a new €100 million program announced.

• H1 2024 saw strong execution of a dual business model, with significant portfolio rotation, asset management growth, and robust capital allocation.

Financial highlights

• Group consolidated net sales reached €3,904.3 million, up 13.4% year-over-year, with organic growth of 8.1%.

• Managed assets totaled €20.4 billion, split between €7.3 billion in principal investments and €13.1 billion in asset management (IK Partners), with IK Partners AUM up 18% YTD.

• Fee-Related Earnings from asset management reached €29.5 million in H1 2024; FPAUM up 16% YTD.

• Share buyback program completed for €100 million, with a new €100 million program announced.

• Dividend of €4 per share paid in H1, up 25% year-over-year, with a yield of 4.8% on share price.

Outlook and guidance

• Targeting €150 million in Fee-Related Earnings by 2027 in asset management, with ongoing focus on organic and external growth.

• Bureau Veritas upgraded its 2024 outlook to high single-digit organic revenue growth and improved margins.

• Globeducate acquisition expected to further enhance growth profile, with closing in H2 2024.

• Focus on expanding asset management in new private market verticals and further portfolio geographic diversification.