Relais Group (RELAIS) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 rose 18% year-over-year to €157.0 million, with 10% organic growth and strong demand in both Finland and Scandinavia.

• Comparable EBITA increased 37% to €17.0 million, with margin improving to 10.8% from 9.4% year-over-year.

• Q2 2024 EBITA up 52% year-over-year and net sales up 16% year-over-year, marking the sixth consecutive quarter of double-digit EBITA growth.

• Earnings per share rose to €0.18 in Q2 (from €0.01) and to €0.39 in H1 (from €0.17).

• Continued active acquisition strategy, expanding presence in heavy commercial vehicle repair and maintenance.

Financial highlights

• Q2 2024 net sales grew 16% year-over-year to €74.3 million; comparable EBITA up 52% to €7.3 million.

• Gross margin improved to 47.7% in Q2 2024 (from 45.7% in Q2 2023), driven by price increases, operational efficiency, and effective purchasing.

• Cash flow from operations in H1 2024 was €14.1 million, reflecting improved profitability and reduced net working capital.

• Net debt at €146.7 million as of June 2024, with net debt to LTM EBITDA leverage at 3.03x, down from 3.62x a year earlier.

• Return on capital employed increased by 2.4 percentage points to 12.9% in H1 2024.

Outlook and guidance

• Outlook for 2024 is stable, assuming current market conditions persist and no major macro shocks occur; some uncertainty in Finnish consumer purchasing power.

• H2 is seasonally important, especially for vehicle lighting products and annual profit, with new product launches and strong commercial activity expected.

• Long-term target is to reach €50 million comparable EBITA by end of 2025, including run-rate EBITA from acquisitions.