CIR (CIR) H1 2024 earnings summary

Executive summary

• Group achieved strong financial performance in H1 2024, driven by divestitures, operational improvements, and positive contributions from KOS and Sogefi.

• Consolidated revenues rose 2% year-over-year to €928.2 million, with KOS up 9% and Sogefi down 2.7%.

• Net profit reached €114.3 million, mainly due to extraordinary gains from asset sales, including Sogefi's Filtration division and real estate.

• Share buyback program continued, acquiring 23.4 million shares (2.2% of capital) and cancelling 60 million shares (5.7%).

• Extraordinary shareholder meeting called for bylaw amendments, including voting rights and board structure changes.

Financial highlights

• Group revenues rose 2% year-over-year to €928.2M; KOS up 9%, Sogefi down 2.7%.

• EBITDA from continuing operations at €134.4 million (14.5% margin), EBIT at €49.5 million (5.3% margin), both up year-over-year.

• Net result from continuing operations was €27.7 million, up from a €3.2 million loss; total net income including asset sales was €114.3 million.

• Net financial position (pre-IFRS16) improved to €316.2 million from a net debt of €32.8 million a year ago.

• Free cash flow before dividends and buybacks reached €365.1 million, reflecting significant asset sales.

Outlook and guidance

• KOS expects further occupancy and margin recovery in 2024, with improvements dependent on tariff realignment.

• Sogefi anticipates a low single-digit revenue decline in 2024 but higher recurring operational profitability, barring unforeseen events.

• Group outlook remains cautious due to macroeconomic and inflation uncertainties.

• Financial asset management faces potential volatility in H2 2024, especially in Private Equity and Hedge Funds.