Jacquet Metals (JCQ) H1 2024 earnings summary

Executive summary

• Sales declined 15.5% year-over-year to €1,074m in H1 2024 amid low demand and price pressure across all markets.

• EBITDA fell to €39m (3.6% of sales), and net income (Group share) dropped to €3.6m from €49m in H1 2023.

• Operating cash flow was strong at €136m, supporting a reduction in net debt and improved gearing to 20.7% from 31% at 2023 year-end.

• The group continued its external growth strategy, acquiring Commerciale Fond SpA in Italy and expanding its distribution network.

• Market conditions remain challenging, with Q3 2024 sales expected to be significantly lower than Q3 2023.

Financial highlights

• Revenue was €1,074m (–15.5% vs. H1 2023); gross margin decreased to €225m (20.9% of sales) from €285m (22.4%).

• EBITDA: €39m (3.6% margin); adjusted operating income: €18m (1.7% margin), down from €84m (6.6%).

• Net income (Group share): €3.6m; EPS: €0.16, down from €2.17 in H1 2023.

• Operating cash flow was €136m, and net debt stood at €140m as of June 30, 2024.

• Net financial expense was €9m; effective tax rate was high at 63%.

Outlook and guidance

• No improvement in the economic environment is expected; Q3 2024 sales anticipated to be well below Q3 2023.

• Focus for H2 2024 will be on working capital and cost management, while maintaining investment and development strategies.