Esprinet (PRT) H1 2024 earnings summary

Executive summary

• Q2 2024 marked a return to growth in the Southern Europe ICT distribution market, with significant market share gains in Italy and Spain, especially in high-margin Solutions and Services segments.

• Adjusted EBITDA grew 9% year-on-year in Q2 2024, driven by volume growth and cost control, while net financial position and cash conversion cycle improved.

• Retail and consumer segments rebounded in Q2, with the group outperforming the market in both B2B and consumer sectors.

• Net income turned positive in Q2 and H1 2024, reflecting improved profitability.

Financial highlights

• Q2 2024 sales from contracts with customers rose 4% year-over-year to €923.7M; H1 2024 sales declined 3% to €1,849.9M.

• Adjusted EBITDA increased by 9% in Q2 2024 to €10.3M; H1 2024 Adjusted EBITDA was €24.7M, nearly flat year-over-year.

• Gross profit margin improved to 5.67% from 5.53% despite a less favorable sales mix.

• Net financial position improved to negative €164M, better than both the previous year (negative €207.2M) and Q1 2024.

• Cash conversion cycle reduced to 22 days in Q2 2024, down 9 days year-over-year.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance is confirmed at €66–71M, up from €64.1M in 2023, with an update expected in November.

• Market recovery is expected to continue in H2 2024, supported by easing inflation, lower interest rates, and digital transformation.

• Long-term growth is anticipated, driven by AI adoption and digitalization, increasing demand for distributor-provided services.