CPH Group (CPHN) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were CHF 176.9 million, down 6.9% year-over-year, reflecting the spin-off of the Paper Division and lower materials costs.

• EBITDA reached CHF 30.2 million (margin 17.1%), and net result for continuing operations was CHF 21.1 million.

• Including the spun-off Paper Division, the group reported a net loss of CHF -8.7 million due to a CHF 22.3 million non-cash spin-off expense.

• The group completed the spin-off of its Paper Division and real estate assets, and entered the Indian market via acquisition.

Financial highlights

• EBITDA margin for continuing operations was 17.1%, slightly down from 17.6% in H1 2023.

• EBIT for continuing operations was CHF 23.5 million (margin 13.3%), down 14.4% year-over-year.

• Cash flow from operating activities was CHF 23.5 million; free cash flow was negative at CHF -13.8 million due to acquisitions and spin-off costs.

• Equity ratio post-spin-off stands at 57.9%, with net cash of CHF 1.0 million.

Outlook and guidance

• Business prospects for H2 2024 are cautiously positive, with expectations of a positive net result for the full year.

• EBITDA for 2024 is projected in the mid-double-digit millions for the continuing divisions.

• Chemistry Division expects net sales and EBITDA for 2024 to be at or near 2023 levels; Packaging expects EBITDA to return to solid 2022 levels.