Scanfil (SCANFL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue/turnover was EUR 195.5 million, down 19.7% year-over-year, reflecting high comparables and market volatility.

• Operating profit reached EUR 13.9 million (7.1% margin), down 20.6% year-over-year, but among the best quarterly margins.

• Efficiency programs and cost controls supported profitability and margin resilience.

• Strategic initiatives advanced, including Dream Factory, Atlanta ramp-up, and Sieradz expansion adjustment; new Chief People Officer appointed.

• MedTech & Life Science segment showed early signs of recovery, with EUR 40.2 million in new deals won in Q2.

Financial highlights

• Revenue/turnover declined 19.7% year-over-year to EUR 195.5 million; H1 turnover was EUR 394.4 million, down 15.7%.

• Operating profit was EUR 13.9 million (7.1% margin), down from EUR 17.5 million (7.2%) in Q2 2023.

• Earnings per share were EUR 0.17 in Q2 (down from 0.22), and EUR 0.32 in H1 (down from 0.40).

• Net cash from operating activities was EUR 37.2 million in Q2 and EUR 46.9 million for H1, driven by inventory reduction.

• Net debt decreased to EUR 29.2 million, down from EUR 87.4 million a year ago; cash and equivalents rose to EUR 40.2 million.

• Total liquidity at the end of H1 was nearly EUR 130 million, including EUR 88.6 million in unused credit facilities.

Outlook and guidance

• 2024 revenue/turnover guidance is EUR 780–840 million (previously EUR 820–900 million), with operating profit targeted at EUR 54–61 million (previously EUR 57–65 million).

• Long-term targets remain 10% annual turnover growth, 7–8% operating profit margin, and net debt/EBITDA ≤1.5.

• Signs of recovery are emerging, especially in MedTech & Life Science, with Energy & Cleantech expected to recover next.

• Focus remains on efficiency, profitability, and building a pipeline for organic and inorganic growth.