Intercos (ICOS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 with net sales of €278.9M–€279M (+9.9%–10% YoY) and Adjusted EBITDA of €43.2M (+15% YoY), offsetting most Q1 cyber attack impacts.

• H1 2024 net sales reached €499.9M (+2.4% YoY), with Adjusted EBITDA at €64M (-5% YoY), reflecting Q1 disruption.

• Order book at end of June up 12.5%–13% YoY, with strong order entry and increased exposure to prestige customers.

• Awarded EcoVadis Platinum medal for ESG for third consecutive year, ranking in the top 1% of the sector.

• Expansion underway in Korea and China, with new commercial/research presence in India.

Financial highlights

• Q2 net sales: €278.9M–€279M (+9.9%–10% YoY); minimal FX headwind (-30bps).

• Q2 Adjusted EBITDA: €43.2M (+15% YoY, margin 15.5%); H1 Adjusted EBITDA margin: 12.8% (down 99bps YoY).

• H1 adjusted net income: €22.9M (-14.9% YoY); H1 net income: €17.9M (-28.5% YoY).

• H1 operating cash flow: €23.2M, up €15.7M–€16M YoY; improved working capital management.

• Net debt at June 30, 2024: €114M–€114.1M, leverage ratio at 0.85x EBITDA.

Outlook and guidance

• FY24 guidance confirmed: full-year sales growth expected at +6%–8%, with H2 sales projected to rise 10%–13% YoY.

• Strong order book and balanced product mix support confidence for double-digit H2 growth.

• EMEA and Asia expected to remain robust; Americas may recover in H2 despite market volatility.

• H2 EBITDA margin expected in the 15%–15.5% range, similar to Q2.