Groupe OKwind Société anonyme (ALOKW) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €31.4M, down €6.1M year-over-year, mainly due to a 17% drop in B2B and 7% in B2C segments.

• EBITDA margin fell to 3.8% from 12.5% in H1 2023, reflecting lower activity and higher structuring costs.

• Net result turned negative at -€0.2M versus €2.8M profit in H1 2023.

• Cash position remains strong at €15.2M as of June 30, 2024, with improved operating cash flow.

Financial highlights

• Gross margin on procurement improved to 50.9% from 47.6% year-over-year, aided by lower material costs and better purchasing.

• Personnel expenses rose 11% to €7.6M, reflecting ongoing group structuring.

• Other operating expenses increased by 12%, mainly due to higher subcontracting and rental costs.

• EBITDA was €1.2M, down from €4.7M in H1 2023.

• Net financial charges increased due to greater reliance on short-term commercial paper.

Outlook and guidance

• Q3 2024 revenue reached €46.1M, down from €55.3M a year earlier.

• Order intake for the first nine months was €36.9M, significantly below €60.3M in the prior year.

• Order backlog at September 30, 2024, stood at €25.5M, down from €45.9M year-over-year.

• Management attributes weak activity to political and economic uncertainty causing client delays.