Gesco (GSC1) H2 2024 earnings summary

Executive summary

• Sales declined 8.4% year-over-year to €513.8 million, with net income after minority interests dropping 79% to €4.4 million and EPS at €0.42.

• EBIT fell to €15.2 million from €35.9 million, impacted by a €9 million loss from the sale of loss-making divisions and one-off effects.

• Portfolio was streamlined with the sale of AstroPlast and Doerrenberg's Foundry and Steelworks, focusing on more profitable core businesses.

• Equity ratio improved to 62.3% despite a €9 million share buyback; net debt/EBITDA reduced to 0.7.

• The group remains financially robust, with strong liquidity and access to credit lines.

Financial highlights

• Revenue: €513.8 million (down from €560.7 million year-over-year).

• EBIT: €15.2 million (vs. €35.9 million prior year); EBIT margin 3.0% (6.4%).

• EBITDA: €36.7 million (vs. €59.0 million prior year).

• Net income after minority interests: €4.4 million (vs. €20.9 million prior year).

• EPS: €0.42 (vs. €1.93 prior year).

• Equity: €270.1 million; equity ratio: 62.3%.

• Net debt: €24.0 million; net debt/EBITDA: 0.7.

• Dividend proposal: €0.10 per share (yield ~0.7%).

Outlook and guidance

• 2025 expected to see a significant recovery in net income and high single-digit sales growth, but not yet reaching 2021–2023 levels.

• Adjusted 2024 sales (excluding divested units) at €480.1 million; 2025 sales to increase from this base.

• Ongoing focus on organic and inorganic growth, with a well-filled M&A pipeline and plans for at least one basic and one add-on acquisition.

• Macroeconomic environment remains challenging, with limited tailwind expected from the economy.