H1 2024 Results
July 23, 2024
Frédéric SIPAHI - CEO
Olivier PROUST - CFO
Maria Beatrice DE MINICIS - Head of Planning and Control
AGENDA
- H1 2024 Results
- A resilient business model and a Sustainable Transformation
- Market Outlook 2024
H1 2024: FINANCIAL HIGHLIGHTS | ||
Revenues at €524.1m | • -2.6% at constant exchange (-2.7% at current), mainly reflecting the market decline in | |
Vs 538.9 in H1 2023 | Europe. Selling prices substantially stable | |
EBITDA at € 67.0m | • Contribution margin € 151.8m vs € 141.3m in H1 2023 (up from 26.2% to 29.0%) | |
• EBITDA excluding non-recurring: € 67.9 m vs € 57.0m in H1 2023 | ||
vs €52.4m in H1 2023 | ||
• Fixed costs in value substantially stable vs H1 2023, despite inflationary pressures on labor | ||
costs in certain geographical areas |
EBIT
Net Income
FCF1 at € 21.6m
vs €0.4xm in H1 2023
NFP (cash) at € 95.3m
vs € debt of 185.3m June '23
- € 27.8m vs € 13.8m in H1 2023 (excluding non-recurring € 28.7m vs € 18.4m) thanks to the recovery of Suspensions margin
Net income of operating activities (Suspensions and A&C at € 10.8m vs € 3.7m in H1 2023). Net income including the Filter disposal effect at € 145.8m
Free Cash Flow positive at € 21.6m, up vs €0.4m in H1 2023. Improvement thanks to
Suspensions turnaround and despite of lower use of factoring
Net Financial Position (cash) end of June 2024 at € 95.3m vs a Net debt end June 2023 of € 185.3m and € 200.7m end of 2023. Extraordinary dividend of € 110m will be paid July 24 (ex-
dividend date on July 22 and record date on July 23, 2024)
1. | FCF and Net debt excluding IFRS 16 | 3 |
H1 2024 : SALES BY GEOGRAPHY
constant | reference | performance | weight | ||||
H1 2023 | H1 2024 | change | exchange | market | vs market | based on | |
€m | rates | production | (bps) | 2024 | |||
Europe 27 | 318.3 | 298.3 | -6.3% | -6.3% | -5.2% | -110 | 56.9% |
North America | 112.9 | 109.9 | -2.6% | -2.1% | 1.8% | -390 | 21.0% |
South America | 52.7 | 54.1 | 2.6% | -1.2% | -7.1% | 590 | 10.3% |
Cina | 49.0 | 54.0 | 10.3% | 14.9% | 5.2% | 970 | 10.3% |
India | 8.1 | 9.4 | 16.2% | 17.6% | 6.8% | 1080 | 1.8% |
Intercompany | (2.1) | (1.6) | |||||
Total | 538.9 | 524.1 | -2.7% | -2.6% | -0.2% | -240 | 100.0% |
- -2.6% at constant exchange mainly reflecting the decline in Europe (-6.3%), a result affected by a difficult market (-5.2%)
- Good growth in China and India overperforming the market
Source: Sogefi and S&P Global (IHS) data. Passenger cars and Light commercial vehicles only.
4
H1 2024 : SALES BY BUSINESS UNIT
constant | ||||
H1 2023 | H1 2024 | change | exchange | |
€m | rates change | |||
Air&Cooling | 234.1 | 234.0 | 0.0% | 0.8% |
Suspensions | 305.0 | 290.8 | -4.7% | -5.0% |
Intercompany | (0.2) | (0.7) | ||
Total | 538.9 | 524.1 | -2.7% | -2.6% |
- Suspensions reflecting the difficult market start in Europe
- Air and Cooling stable at constant exchange rates thanks to a better-than-market performance in Europe
5
OUR CUSTOMERS (% of sales)
H1 2023 | German Premium and Chinese OEMs gaining shares |
H1 2024 |
6
2.6%
H1 2024 : EBIT PERFORMANCE BREAKDOWN VS 2023
5.3 %
5.5 % | of sales |
of sales |
3.4 %
of sales
of sales
(*) Variances calculated at stable FX
(**) Exchange rate impact net of Argentinian inflation | 7 |
. | H1 2024 : P&L | ||||
€m | H1 2023 | % | H1 2024 | % | |
REVENUES | 538.9 | 100.0% | 524.1 | 100.0% | |
CONTRIBUTION MARGIN | 141.3 | 26.2% | 151.8 | 29.0% | |
Gross Fixed Costs | 87.7 | 16.3% | 88.2 | 16.8% | |
Restructuring | 0.5 | 0.1% | 1.6 | 0.3% | |
Exchange Differences | 2.4 | 0.4% | -0.8 | -0.2% | |
EBITDA | 52.4 | 9.7% | 67.0 | 12.8% | |
EBITDA excluding non-recurring | 57.0 | 10.6% | 67.9 | 13.0% | |
D&A | 39.0 | 7.2% | 39.1 | 7.5% | |
Write downs | -0.4 | -0.1% | 0.0 | 0.0% | |
EBIT | 13.8 | 2.6% | 27.8 | 5.3% | |
EBIT excluding non-recurring | 18.4 | 3.4% | 28.7 | 5.5% | |
Financial results | 8.2 | 1.5% | 9.1 | 1.7% | |
Income Tax | 1.9 | 0.4% | 8.0 | 1.5% | |
Minority Interest | 1.6 | 0.3% | 1.4 | 0.3% | |
NET INCOME OF OPERATING | 3.7 | 0.7% | 10.8 | 2.1% | |
ACTIVITIES | |||||
Net income from discontinued | 29.3 | 136.4 | |||
operations | |||||
NET INCOME | 31.4 | 5.8% | 145.8 | 27.8% |
Higher contribution margin thanks to Squeeze management
Fixed costs in value stable despite inflationary pressure on labor costs in certain geographical areas
Up 19.1%
Up 55.9%
Up due to one-off charges connected to the early repayment of some loans
Higher taxes reflecting progression in new perimeter (Suspensions and Air & Cooling) pre-tax results
Includes capital gain for the Filtration disposal (€ 124.5m), costs and taxes incurred to complete the transaction and the Filtration net profit up to end of 8 May (€ 22.2 million)
H1 2024 : FREE CASH FLOW NEW PERIMETER
€m | 2023 |
FUNDS PROVIDED BY OPERATIONS | 43.5 |
Working Capital | -7.2 |
Capex (Tangible, Intangibles & IFRS15) | -33 |
Others | -2.9 |
FREE CASH FLOW (NET) EX DISPOSAL | 0.4 |
2024
44.5 | |
4.7 | |
-27.9 | |
0.3 | |
21.6 | Despite lower use of factoring |
NET FINANCIAL POSITION | 185.3 |
FACTORING | 71.6 |
(95.3) 54.5
After the dividends payment of € 27.1m and €
316.5 cash-in of the Filtration Disposal (including taxes and costs)
FCF and Net debt excluding IFRS 16 | 9 |
H1 2024: SUSPENSIONS
SALES (€m) | EBITDA (€m) excluding non-recurring |
EBITDA Margin | 7.0% | 9.6% |
- H1 2024 down 5.0% at constant (-4.7%at current exchange) mainly affected by the difficult market in Europe
- Sales positive trend in China and India (+50.3%, and +17.6% respectively at constant exchange)
- EBITDA growth in absolute value and in %
- H1 2024 contribution margin up in % (from 24.7% to 28.1%) and in value (+8.7 % vs H1 2023) thanks to squeeze management
- Margin improvements thanks to the actions implemented in Europe (concentration of production
capacity after footprint optimization and Romania at | |
EBITDA breakeven) | 10 |