Avolta (AVOL) H2 2024 earnings summary

Executive summary

• Reported 2024 revenue of CHF 13.5 billion, with 8.9% growth at constant exchange rates and 6.3% organic growth; excluding Argentina, organic growth was 7.7%.

• CORE EBITDA rose 12.2% year-over-year to CHF 1,267 million, with margin expanding by 40 basis points to 9.4%.

• Equity Free Cash Flow reached CHF 425 million, up 32% year-over-year, with conversion improving by 490 basis points to 33.5%.

• Shareholder value initiatives included a 43% higher dividend (CHF 1.00/share), a CHF 200 million share buyback, and cancellation of 6.1 million shares.

• 2025 started strong, with organic growth at 6% (7.7% adjusted for leap year effect) and YTD revenue growth of 9.5% through February.

Financial highlights

• FY 2024 revenue reached CHF 13.5 billion, with organic growth of 6.3% and CER growth of 8.9%.

• CORE EBITDA was CHF 1,267 million (margin 9.4%), up from CHF 1,130 million in 2023.

• Net profit attributable to equity holders was CHF 386 million, a 25% increase year-over-year.

• EFCF conversion improved to 33.5% from 28% in 2023.

• Net debt to EBITDA reduced to 2.1x (1.9x excluding share buyback), the lowest in over a decade.

Outlook and guidance

• Medium-term targets: 5–7% organic revenue growth, 20–40 basis points annual EBITDA margin expansion, and 100–150 basis points annual improvement in Equity Free Cash Flow conversion.

• 2025 expected to continue strong performance, with regional diversification mitigating risks.

• CapEx guidance remains at 4% of turnover; further improvements in cash conversion expected.

• Capital allocation policy focuses on growth investments, balance sheet efficiency, and progressive dividends.

• 2025 currency translation expected to be broadly neutral at current rates.