Anima Holding (ANIM) Q2 2024 earnings summary

Executive summary

• Achieved record first-half 2024 results, with assets under management reaching €198 billion, up 7% year-over-year, and strong recurring revenues supported by the consolidation of Kairos and Castello acquisitions.

• Retail net inflows were the strongest since 2015, driven by strategic partner banks and renewed client interest in managed solutions.

• Integration of Kairos and Castello diversified the business, improved profitability, and enhanced the product mix, with a focus on affluent, high-net-worth, and institutional clients.

Financial highlights

• Total revenues reached €239.4 million, up 47% year-over-year, driven by strong performance fees and the consolidation of Kairos (2 months) and Castello (6 months).

• Adjusted EBITDA was €176.2 million, up 51% year-over-year, with a margin of 73.6%.

• Net profit was €118.6 million, up 88% year-over-year; adjusted net profit was €124.9 million.

• Performance fees contributed €46.4 million, a significant increase from negligible levels last year.

• Free cash flow yield remained in double digits, and cash and equivalents stood at €311.5 million as of June 2024.

Outlook and guidance

• Management expects continued strong net inflows and sustained improvements in product mix and profitability, supported by recent acquisitions and recurring revenue momentum.

• 'Wrapping' outflows are expected to decrease but will still impact results in the coming months.

• Guidance for other revenues is for a linear trend, assuming stable or growing assets.

• Management fee margin may see a slight technical increase from full-year Kairos consolidation, but no major further expansion is anticipated.

• The company is positioned to benefit from a potential rate cut scenario, with banks focusing on managed assets.