Belysse Group (BELYS) H1 2024 earnings summary

Executive summary

• H1 2024 consolidated revenue was €144.7 million, down 7.0% year-over-year, reflecting lower demand in European residential and softer US project-driven segments.

• Adjusted EBITDA rose 75.1% year-over-year to €21.5 million, with margin improving to 14.8% from 7.9% in H1 2023, driven by profitability and cost savings.

• Net debt at period end was €139.2 million, down €6.1 million from end-2023, with leverage reduced to 3.2x from 4.5x.

• Market softness persisted in European residential and US project-driven segments, but profitability improved due to cost savings and product mix.

Financial highlights

• Q2 2024 revenue was €74.5 million, down 5.7% year-over-year.

• US H1 2024 revenue declined 6.2% to €75.9 million; Europe declined 7.8% to €68.8 million.

• US H1 adjusted EBITDA was €14.4 million (+3.6% YoY); Europe H1 adjusted EBITDA was €7.1 million, with significant margin recovery.

• Cash balance at end of H1 2024 was €29 million, down from €35.8 million at end-2023; available liquidity at €41 million.

• Cash outflow in H1 2024 mainly due to debt repayments, interest, arrangement fees, CapEx, and working capital changes.

Outlook and guidance

• Cost outlook remains cautious, especially for polyamide due to supplier exit and global shipping disruptions.

• Gas and electricity prices are hedged, with no major impact expected in 2024; wage inflation is stable.

• Pricing has remained stable despite weak demand; no significant changes anticipated unless market conditions shift.

• CapEx budget for full year 2024 is expected to be in line with previous years.

• Next trading update scheduled for October 2024.