Wetteri (WETTERI) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 42% year-over-year to €275.7 million, mainly driven by strategic acquisitions and strong used car sales.

• Adjusted EBITDA was €10.8 million, flat year-over-year, while adjusted operating profit declined 34% to €3.2 million.

• Operating profit was €0.5 million, down from €2.2 million in H1 2023, reflecting integration costs and weak new car demand.

• The company divested its training business, generating a €2.7 million capital gain.

• Wetteri updated its 2024 guidance downward due to delayed acquisition effects and a weaker-than-expected new car market.

Financial highlights

• Q2 2024 revenue increased 23% year-over-year to €131.1 million.

• Adjusted EBITDA for Q2 was €4.6 million (down 12%), and adjusted operating profit was €0.7 million (down 68%).

• Net loss for H1 2024 was €2.4 million; EPS from continuing operations was -€0.03.

• Return on equity (ROE) for H1 was -29%; equity ratio remained at 16%.

• Net debt increased to €140.7 million; gearing was 378%.

Outlook and guidance

• 2024 revenue is now expected at €520–640 million, with adjusted operating profit of €12.8–15.6 million.

• Medium-term (3-year) targets: €1 billion in revenue and €30 million in operating profit.

• The automotive sector expects a 10% increase in new car demand in 2025; used car and maintenance segments are expected to remain strong.