HELLA (HLE) H2 2024 earnings summary

Executive summary

• Achieved record sales above €8 billion, outperforming the market by 240 basis points year-over-year, with organic sales up 1.3% to €8.1bn and reported sales at €8.0bn.

• Net income reached €371 million, up 40% from 2023, including a book gain from the BHTC joint venture disposal (€106–116 million).

• Continued focus on sustainability, with improved CDP rating to A and significant progress on Scope 1 and 2 CO2 reduction targets.

• Strategic initiatives included fixed and material cost reductions, workforce reduction, and R&D efficiency improvements.

• Outperformed the market in all regions, with strong order intake and technology leadership.

Financial highlights

• Operating income margin at 5.6%, EBIT at 5.9%, and net income margin at 4.6% (up from 3.3%); EBIT up 1.2% to €469.5m.

• Gross margin at 23% (down from 23.7% year-over-year) due to product mix and volume reductions; R&D spend reduced to 10% of sales.

• Net cash flow at €189 million, comparable to previous year when adjusted for factoring; tangible CapEx at €440 million, down 2% year-over-year.

• Proposed dividend of €0.95 per share, maintaining a 30% payout ratio.

• Non-recurring operating income and expenses at €18.7m, including €119m capital gain from BHTC sale and €110m restructuring costs.

Outlook and guidance

• Sales guidance for next year set at €7.6–8 billion, with operating margin between 5.3% and 6%, and cash flow target of at least €200 million.

• Market expected to remain stable overall, with negative volume expectations in Europe and Americas, and slight growth in Asia.

• Lighting sales expected to decline; Electronics and Lifecycle Solutions to remain at prior year levels.