B&C Speakers (BEC) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 reached €51.25 million, up 5.6% year-over-year, driven by growth in Europe, North America, and new subsidiaries.

• Net profit surged 45.4% to €11.83 million, benefiting from a Patent Box subsidy.

• EBITDA was €11.48 million, down 4.8% year-over-year, with margin dilution due to lower-margin subsidiaries.

• Order book grew 64% year-over-year, indicating strong customer loyalty and robust demand.

• Dividend of €0.70 per share, totaling €7.7 million, was distributed in May 2024.

Financial highlights

• EBIT for H1 2024 was €10.19 million, down 7.5% year-over-year; EBIT margin at 19.9%.

• Operating cash flow was €7.98 million, supporting dividend payments and loan repayments.

• Net financial position was negative €1.8 million, impacted by dividend payments and increased indebtedness.

• EPS rose to €1.07 from €0.75 in H1 2023.

• EBITDA margin declined to 22.4% from 24.8% due to lower margins at new subsidiaries.

Outlook and guidance

• Order intake continued to rise post-H1 2024, supporting expectations for higher production and sales for the full year, though summer saw a slowdown.

• Initial impacts from new subsidiaries expected toward the end of the next financial year.

• Management is monitoring geopolitical risks but sees no significant uncertainties regarding business continuity.