Biesse (BSS) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was €560.8 million, down 5.9% year-over-year, with adjusted EBITDA at €44.0 million, a 29.8% decrease, and net profit at €2.6 million, down 83.9% compared to 2023.

• The GMM Group acquisition in January 2024 significantly impacted headcount, scope of consolidation, and financials, including a negative effect on net result due to acquisition-related costs.

• EMEA remains the largest market, accounting for 63% of global sales, though revenues in the region declined year-over-year; Americas and APAC showed growth, with APAC led by India and China.

• The economic environment remains weak, with high inflation, restrictive monetary policy, and limited GDP growth in most markets except India.

• Clients face credit constraints, leading to increased financial holds and delayed machine deliveries.

Financial highlights

• Orders for the first nine months reached €511.2 million, with backlog at €249 million, down 14% year-over-year; GMM contributed €87 million in revenues and €69 million in orders.

• Adjusted EBIT was €14.5 million (2.6% margin, –57.8% year-over-year); net result margin dropped to 0.5% from 2.7%.

• Net financial position (excluding IFRS 16) was €4.2 million, down from €118.5 million at year-end 2023; including IFRS 16, it was negative €28.1 million.

• Net operating working capital increased to €96.3 million, mainly due to the GMM acquisition.

• CapEx for nine months was €9 million, with €3–4 million expected in Q4.

Outlook and guidance

• Revenue levels are expected to remain stable in 2025, with no significant increase or decrease anticipated.

• The Group is accelerating strategic projects and GMM integration to improve efficiency and be ready for market recovery.

• Labor cost reductions and headcount rightsizing are part of a long-term transformation plan.

• Persistent geopolitical tensions and restrictive monetary policies continue to create uncertainty and volatility in financial markets.

• The manufacturing sector, especially woodworking technology and furniture, faces a prolonged contraction.