Clariane (CLARI) H1 2024 earnings summary

Executive summary

• Achieved 6.8% organic revenue growth in H1 2024, with all businesses and regions contributing and notable improvement in Germany; EBITDA increased 3.5% proforma of disposals, and operating free cash flow rose to €74m from €45m in H1 2023.

• Net loss group share was -€28m, mainly due to losses on French serviced residence disposals and interim financing costs.

• Financial position strengthened via capital increases totaling up to €329m and asset disposals securing over 40% of the €1bn target by 2025.

• Progressed significantly on balance sheet strengthening and debt reduction, in line with the refinancing plan.

• 2024 full-year outlook and midterm objectives confirmed, with continued focus on deleveraging and asset disposals.

Financial highlights

• Revenue reached €2,636m in H1 2024 (+6.8% organic, +6.1% reported).

• EBITDA (pre-IFRS 16, excl. disposals) was €290m (+3.5%), margin at 11.0%, up 75 bps excluding real estate development.

• Operating free cash flow increased to €74m from €45m in H1 2023.

• Net debt at €3.7bn as of June 2024, expected to fall to €3.5bn after rights issue proceeds; reduced by €500m year-over-year.

• Net profit group share was -€28m, including a loss on the disposal of the serviced residence business in France.

Outlook and guidance

• 2024 organic revenue growth expected above 5%; 2023-2026 CAGR targeted at ~5%.

• EBITDA (pre-IFRS 16, excl. disposals) expected to remain at least stable, with margin to rise 100–150 bps by 2026.

• Leverage ratio targeted below 3x and LTV at 55% by end-2025.

• Focus on cash flow generation, debt control, and capex covered by operating cash flow for 2024.

• CSR goals include SBTi-validated carbon trajectory and Top Employer Europe certification.