Wendel (MF) Q3 2024 TU earnings summary

Executive summary

• Fully diluted NAV per share rose 13.7% year-to-date to €184.5, driven by Bureau Veritas and asset management growth, with a 16.1% increase including dividends.

• Major portfolio rotation included the sale of Constantia Flexibles, partial sale of Bureau Veritas, and acquisitions of Globe Educate and Monroe Capital, accelerating the strategic shift toward asset management.

• Asset management platform now manages up to €40bn, with FPAUM up 19% YTD and €1.8bn raised; third-party AuM expected to reach €31bn post-Monroe Capital acquisition.

• Priorities include value creation on existing assets, building the private asset management platform, and maintaining a solid financial structure.

• Asset management is now a significant performance driver, with recurring cash flows and a more predictable business model.

Financial highlights

• Consolidated sales up 14.6% overall and 8.9% organically for the first nine months of 2024 compared to the same period last year.

• Bureau Veritas delivered 10.4% organic growth over 9 months, with its share price up 34.3% YTD, driving NAV growth.

• NAV per share (fully diluted) increased by €22.2 since December 31, 2023, with a 16.1% rise when including the €4.0 dividend paid in May.

• Total NAV: €8 billion, with listed assets at €3.8 billion (Bureau Veritas €3.6 billion), unlisted assets at €3.15 billion, and asset management at €450 million.

• Positive impact from share buybacks (+€1.4 per share) and strong cash yield (4%) versus average debt cost (2.4%).

Outlook and guidance

• Confident in surpassing €150m 2027 Fee Related Earnings (FRE) target, driven by Monroe and IK Partners, with €160m FRE and €185m pre-tax profit expected in 2025.

• Bureau Veritas raised 2024 guidance: organic revenue growth of 9–10%, improved adjusted operating margin at constant FX, and cash conversion above 90%.

• Focus on value creation, building the private asset management platform, and sustaining double-digit total shareholder return.