Vidrala (VID) Q2 2024 earnings summary

Executive summary

• Sales for H1 2024 reached €830.4 million, up 4.5% year-over-year, with organic growth of 0.7%.

• EBITDA rose 4.6% to €225.0 million, with a stable margin of 27.1%.

• Net profit was €120.8 million, with EPS at €3.75, down 6.0% compared to H1 2023.

• Net debt as of June 30, 2024, was €433.4 million, leverage at 1.0x EBITDA, reflecting recent M&A and the sale of the Italian segment.

• Strategic divestments and acquisitions, including entry into Brazil and sale of Italian operations, strengthened the business profile.

Financial highlights

• EBIT for H1 2024 was €164.9 million, with a margin of 19.9%.

• Free cash flow for H1 2024 totaled €89.8 million, representing about 11% of sales.

• Shareholder cash remuneration in 2024 amounted to €5.45 per share, including an extraordinary dividend.

• Earnings per share declined 6.0% to €3.75.

• Net debt rose 52.7% year-over-year to €433.4 million.

Outlook and guidance

• Full-year 2024 EBITDA guidance reiterated above €450 million.

• Free cash flow forecast above €180 million, excluding M&A payments.

• FY 2024 sales expected at €1,600 million, with modest volume recovery in Europe & UK and capacity expansion in Brazil.

• Earnings per share guidance at €7.00, with double-digit growth in recurrent, adjusted EPS.

• Management reiterates guidance despite softer-than-expected global demand, citing improved financial position and readiness for demand recovery.