Exclusive Networks (EXN) H1 2024 earnings summary

Executive summary

• Achieved double-digit gross sales growth in H1-24, reaching €2,564m, up 10% reported and 11% at constant currency.

• Net margin increased 6% year-over-year to €235m, representing 9.2% of gross sales.

• Adjusted EBIT rose 5% to €88m, close to 38% of net margin, with strong cash generation and a leverage ratio of 1.0x.

• APAC returned to growth, supported by the Nextgen Group acquisition, contributing to overall momentum.

• Vendor and customer retention rates remained above 100%, supporting sustainable growth.

Financial highlights

• Q2-24 gross sales grew 14% year-over-year to €1,309m; organic growth and M&A (NextGen) were key drivers.

• IFRS revenue for H1-24 declined 7% to €723m, mainly due to a shift from hardware to software and support.

• Adjusted net income increased 2% to €46m, reflecting EBIT growth partially offset by higher financial expenses and taxes.

• Basic and diluted EPS for H1-24 were €0.15, down from €0.18 in H1-23.

Outlook and guidance

• FY24 guidance confirmed: gross sales growth of 10–12% at constant currency, net margin €500–515m, adjusted EBIT €200–210m, and adjusted operating FCF above 80% of adjusted EBITDA.