Hera (HER) Q2 2024 earnings summary

Executive summary

• H1 2024 results showed strong growth in key financial indicators, with net profit up 16.4% and EBITDA rising 2%, confirming alignment with business plan targets and strong Q2 execution.

• Revenue declined by 32.7–33.3% year-over-year due to lower energy prices and reduced trading activity, but this improved market stability and margins.

• Significant expansion in the energy customer base, including the addition of 1 million Maggior Tutela clients, and continued focus on sustainable strategy and stakeholder value creation.

• Net Zero target by 2050 approved, with substantial progress on emissions reduction and innovative ESG initiatives.

• All business areas contributed to structural growth, with balanced contributions from market and regulated activities.

Financial highlights

• Revenues: €5,536.8m–€5,785m in H1 2024, down over 32% year-over-year.

• EBITDA: €732.7m–€733m (+2% year-over-year); EBIT: €385m–€385.1m (+2.8%).

• Net profit attributable to shareholders: €218m–€218.4m (+16.4% year-over-year); net income: €237.3m (+14.1%).

• Operating cash flow for H1: €536m, up €76m (+17%) year-over-year.

• Gross operating investments: €344.4m, up 8.2% year-over-year; CapEx: €328m, up €22m.

• Dividend yield above 4%, with dividend per share and distribution increased.

Outlook and guidance

• Results are in line or ahead of business plan expectations, supporting a positive outlook for H2 2024.

• Net debt expected to remain stable around €4.1–4.15bn by year-end, with net debt/EBITDA at 2.6–2.7x.

• Commitment to Net Zero by 2050, with further development expected through technological innovation and decarbonization.

• Financial flexibility maintained, with access to significant undrawn credit lines and sustainable financing.

• Energy efficiency business expected to normalize and grow from 2025 onward.