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.

• Profitability was impacted by a challenging market environment, integration costs, and weak new car demand, with adjusted EBITDA flat at €10.8 million and adjusted operating profit down 34% to €3.2 million.

• Operating profit was €0.5 million, down from €2.2 million in H1 2023.

• Actions to improve profitability have been initiated, including a cost savings program targeting €4 million annually.

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

Financial highlights

• H1 2024 revenue: €275.7 million (H1 2023: €194.3 million).

• Adjusted EBITDA: €10.8 million (H1 2023: €10.7 million); adjusted operating profit: €3.2 million (H1 2023: €4.9 million).

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

• 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%.

Outlook and guidance

• 2024 revenue guidance: €520–640 million; adjusted operating profit: €12.8–15.6 million.

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

• New car registrations for 2024 revised down to 75,000 units.

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

• Timing of planned acquisitions in 2024 may shift revenue and profit impacts.