Wendel (MF) H1 2024 earnings summary

Executive summary

• Fully diluted NAV per share rose 7.9% year-to-date to €175.2, supported by Bureau Veritas' strong performance and active portfolio management.

• Net income, group share, surged to €388 million in H1 2024 from €40 million in H1 2023, mainly due to the disposal of Constantia Flexibles.

• Strategic transformation advanced with the acquisition of 51% of IK Partners and investment in Globeducate.

• Ordinary dividend of €4.00 per share for 2023 (+25% YoY) paid in May 2024; €100 million share buyback completed, with a new €100 million program announced.

• €2.3 billion in disposals and value crystallization; €0.7 billion invested or committed in H1 2024.

Financial highlights

• Group consolidated net sales reached €3,904 million, up 13.4% year-over-year, with 8.1% organic growth.

• Portfolio company contribution to net trading was €865 million, up 9.4% year-over-year.

• Managed assets totaled €20.4 billion, split between €7.3 billion in principal investments and €13.1 billion in asset management.

• IK Partners' AUM grew 16–18% YTD to €13.1 billion, with strong fundraising and dry powder near €3 billion.

• Total liquidity stood at €3.81 billion, including €2.9 billion in cash and €875 million in undrawn credit facility.

Outlook and guidance

• Targeting €150 million in fee-related earnings by 2027 (company share), with continued growth in asset management and recurring cash flow.

• Ambition to achieve double-digit IRR in principal investment over the long term.

• Bureau Veritas upgraded its 2024 outlook to high single-digit organic revenue growth and strong cash conversion above 90%.

• Focus on value creation through organic growth, M&A, and platformization in asset management.

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