Delta Plus Group (ALDLT) H1 2024 earnings summary

Executive summary

• Revenue declined 8.9% year-over-year to €193.9M in H1 2024, with organic growth at -5.8% and negative FX impact, mainly due to the Euro strengthening against the RMB.

• Operating margin remained solid at 12.5% despite lower sales, but operating income fell to €24.2M from €28.3M.

• Net income dropped 38% to €12.3M, impacted by lower operating profit, hyperinflation in Argentina, and a higher effective tax rate.

• Financial structure strengthened, with stable leverage and increased equity, despite a normalized working capital requirement.

Financial highlights

• Revenue: €193.9M, down 8.9% year-over-year; organic decline of 5.8% after adjusting for Argentina.

• Operating income: €24.2M (12.5% margin), down from €28.3M (13.3%) in H1 2023.

• Net income: €12.3M, down from €19.8M; EPS €1.70 vs €2.71.

• Cost of goods sold fell 17.4%, but fixed and variable costs rose slightly.

• Non-recurring items: -€1.0M from early settlement of BSA related to Boots/Italboot acquisition.

Outlook and guidance

• Targeting positive organic revenue growth for 2024, despite macroeconomic and geopolitical uncertainties.

• Aims to maintain operational profitability at levels similar to recent years.

• No significant M&A impact expected in 2024, but external growth remains a strategic focus.

• Measures in place to mitigate risks from inflation, FX volatility, and geopolitical tensions.