LU-VE (LUVE) Q1 2024 earnings summary

Executive summary

• Q1 2024 sales/revenues were €141.9M, down 6.3% year-over-year, but excluding heat pump sales, sales grew by 4.9%. Profitability improved due to cost-saving programs.

• EBITDA increased by 2.3% to €19.6M (13.8% margin), with adjusted net income up 18.2% to €10.4M. Net income reached €11.0M (7.8% margin).

• Order book rose 8.1% from December 2023 to €168.8M.

• Leverage reduced to 1.7x EBITDA adj, supported by strong cash flow and working capital reduction.

• Cooling Systems SBU grew 9.5% to €67.0M, while Components SBU declined 16.9% to €74.3M.

Financial highlights

• Q1 2024 sales/revenues: €141.9M, down 6.3% year-over-year; EBITDA adj: €19.6M (13.8% margin); EBIT adj: €12.9M (+4.0%).

• Net income adj: €10.4M (+18.2%); net income: €11.0M (7.8% margin), up from €6.8M (4.5%).

• Net financial debt at €137.1M, leverage at 1.7x EBITDA adj, improved year-over-year.

• Cash and cash equivalents at period end: €245.6M, up from €212.1M at year-end.

• Net cash generation adj LTM: €48.5M.

Outlook and guidance

• Medium/long-term organic sales growth guidance at 7.5% CAGR (2018–2024), in line with consensus.

• Management expects continued medium-term growth, with differentiated trends across applications.

• Focus on datacenter and industrial projects, automation, process optimization, and supply chain efficiency.

• Second stage of plant expansion in China and US underway; potential heat pump market recovery in 2025.

• Profitability and cash generation expected to be preserved through automation and cost containment.