VusionGroup (VU) H1 2024 earnings summary

Executive summary

• H1 2024 adjusted revenue reached €431 million, up 13% year-over-year, with record order intake of €714 million (+38% YoY), driven by major U.S. contracts (notably Walmart) and renewed growth in Europe.

• Adjusted EBITDA rose 36% to €59/€59.1 million, with margin up 2.3 points to 13.7% of sales; free cash flow was robust at €203 million, and net cash position improved to €215 million.

• Walmart rollout accelerated, targeting 500 stores by year-end and 2,300 by 2026; Foxconn appointed as new EMS partner to support scale.

• Company rebranded as VusionGroup, launched EdgeSense and VusionOS, and made significant ESG progress, including a low 8% attrition rate and top 1% Ecovadis rating.

• Major rollouts and contracts in the U.S. (Walmart, Ace Hardware, Hy-Vee) and renewed growth in Europe across multiple retail segments and new verticals.

Financial highlights

• Adjusted revenue: €431.1 million (+13% YoY); IFRS revenue: €408.9 million.

• Adjusted EBITDA: €59/€59.1 million (+36% YoY), margin 13.7% (+2.3 pts); adjusted EBIT: €23.8 million (+5% YoY).

• Free cash flow: €203 million; net cash: €215 million at H1 2024 end.

• CapEx: €77.9 million (5.4% of sales), with €54.5 million customer-financed; self-financed CapEx at €23.4 million.

• Order intake: €714 million (+38% YoY); 12-month rolling orders: €1,146 million.

Outlook and guidance

• Full-year 2024 adjusted revenue target of €1 billion confirmed, with Q4 expected to accelerate ESL deliveries.

• Adjusted EBITDA margin guidance raised to 100–200 basis points improvement for FY 2024.

• Recurring VaaS/VAS revenues expected at €60 million; total VaaS/VAS revenues around €120 million, at the low end of the initial range.

• Continued positive cash flow and robust order entries anticipated; preparing for even stronger 2025.

• Order intake anticipated to reach a new record for the full year.