H1 2024 Highlights
-
Revenue in the first half of 2024 was stable relative to the prior year, at
EUR 2.1bn . In Q2, total group revenue increased by 4.4% toEUR 1.1bn , driven by M&A growth contribution and stable organic revenue.
-
Gross profit of
EUR 526.5m represents year-on-year growth of 1.8%, supported by positive mix effect and improved performance from recent acquisitions. Gross profit margin of 24.5% reflects a 39 bp expansion over the prior year.
-
Adjusted EBITA of
EUR 254.0m , representing a decline of 3.6% compared to the strong comparable performance in the prior year. Adjusted EBITA margin was 11.8%, resulting in conversion margin of 48.2% for the period.
-
Net profit of
EUR 100.1m represents a year-on-year decline of 8.3%, due mainly to lower operating profit and the full year impact of higher debt level and interest expense.
-
Free cash flow was
EUR 136.5m in H1 2024, representing a 44.3% decrease compared to the prior year, due to lower EBITDA and higher investments in working capital.
-
Leverage ratio was 2.7x at the end of
June 2024 , versus 2.5x at the end ofDecember 2023 and 2.6x at the end ofJune 2023 .
-
Four acquisitions were completed during the period. Two further acquisitions have been announced year to date. The combined annual revenue of these six companies were over
EUR 70m in the prior year.
-
The management of
Azelis will provide an update on the Group strategy, including its midterm outlook, at the third edition of its Annual Investor Lab Tour on the 17th of September.
(in millions of €) |
H1 2024 |
H1 2023 |
Reported
|
Constant
|
Life Sciences |
1,348.4 |
1,316.9 |
2.4% |
3.8% |
Industrial Chemicals |
797.3 |
824.4 |
-3.3% |
-2.3% |
Revenue |
2,145.7 |
2,141.2 |
0.2% |
1.5% |
Gross Profit |
526.5 |
517.1 |
1.8% |
3.2% |
Gross Profit Margin |
24.5% |
24.1% |
39 bp |
42 bp |
Adjusted EBITDA1 |
274.8 |
279.2 |
-1.6% |
0.5% |
Adjusted EBITDA Margin |
12.8% |
13.0% |
-23 bp |
-13 bp |
Adjusted EBITA 1 |
254.0 |
263.4 |
-3.6% |
-1.5% |
Adjusted EBITA Margin |
11.8% |
12.3% |
-46 bp |
-36 bp |
Conversion Margin1 |
48.2% |
50.9% |
-269 bp |
-235 bp |
Net Profit |
100.1 |
109.2 |
-8.3% |
-8.7% |
Cash earnings per share1 |
0.56 |
0.60 |
-7.5% |
-7.9% |
Earnings per share |
0.39 |
0.44 |
-11.2% |
-17.2% |
Operating Cash Flow |
153.4 |
250.2 |
-38.7% |
|
Free Cash Flow1 |
136.5 |
245.2 |
-44.3% |
|
FCF Conversion ratio1 |
53.3% |
92.2% |
-3891 bp |
|
|
15.4% |
15.4% |
0 bp |
|
Leverage Ratio1 |
2.7x |
2.6x |
+ 0.1x |
|
1 Refer to the definitions of Alternative Performance Measures in the 2023 Integrated Report
Comment from
We continue to execute on our growth strategy, whilst also remaining steadfast in our focus on our costs. We will balance our objective of generating growth while maintaining our strong conversion margins.
I look forward to providing an update on our strategy and the outlook for the Group at our annual investor lab tour on the 17th of September."
CONFERENCE CALL
The management of
OPERATIONAL REVIEW
Headline results
Q2 2024 |
Q2 2023 |
Organic Growth |
Total Growth |
(in millions of €) |
H1 2024 |
H1 2023 |
F/X Trans-lation |
M&A Growth Contri-
|
Organic Growth |
Total Growth |
457.1 |
443.5 |
-0.9% |
3.1% |
EMEA |
917.2 |
944.4 |
-2.1% |
4.2% |
-5.0% |
-2.9% |
415.3 |
376.5 |
0.4% |
10.3% |
|
786.7 |
734.9 |
1.2% |
9.8% |
-4.0% |
7.1% |
222.2 |
228.4 |
-1.1% |
-2.7% |
|
441.8 |
461.9 |
-3.5% |
2.8% |
-3.6% |
-4.4% |
1,094.6 |
1,048.4 |
-0.5% |
4.4% |
Group Revenue |
2,145.7 |
2,141.2 |
-1.2% |
5.8% |
-4.4% |
0.2% |
|
|
|
|
|
|
|
|
|
|
|
119.4 |
122.8 |
-5.4% |
-2.8% |
EMEA |
240.6 |
252.5 |
-2.2% |
4.6% |
-7.2% |
-4.7% |
101.4 |
85.3 |
7.2% |
18.8% |
|
193.7 |
176.2 |
0.7% |
10.9% |
-1.8% |
9.9% |
45.1 |
43.2 |
4.3% |
4.3% |
|
92.2 |
88.3 |
-3.3% |
4.1% |
3.6% |
4.4% |
265.9 |
251.3 |
0.5% |
5.8% |
Group Gross Profit |
526.5 |
517.1 |
-1.4% |
6.7% |
-3.5% |
1.8% |
|
|
|
|
|
|
|
|
|
|
|
62.3 |
67.6 |
-10.1% |
-7.9% |
EMEA |
128.1 |
140.2 |
-2.8% |
4.0% |
-9.8% |
-8.6% |
53.3 |
51.2 |
-6.8% |
4.1% |
|
98.5 |
100.0 |
0.5% |
10.1% |
-12.1% |
-1.5% |
22.6 |
19.8 |
14.4% |
14.4% |
|
44.8 |
41.2 |
-3.3% |
3.8% |
8.0% |
8.6% |
129.7 |
129.4 |
-5.2% |
0.2% |
Group Adjusted EBITA 1 |
254.0 |
263.4 |
-2.1% |
6.6% |
-8.1% |
-3.6% |
1 Total Adjusted EBITA includes Holding companies.
In H1 2024, revenue in Life Sciences increased by 2.4% to
EMEA
Q2 2024 |
Q2 2023 |
Reported Change |
(in millions of €) |
H1 2024 |
H1 2023 |
Reported Change |
Constant Currency |
457.1 |
443.5 |
3.1% |
Revenue |
917.2 |
944.4 |
-2.9% |
-0.8% |
119.4 |
122.8 |
-2.8% |
Gross Profit |
240.6 |
252.5 |
-4.7% |
-2.5% |
26.1% |
27.7% |
-157 bp |
Gross Profit Margin |
26.2% |
26.7% |
-51 bp |
-47 bp |
66.9 |
70.8 |
-5.5% |
Adjusted EBITDA |
136.6 |
146.6 |
-6.8% |
-4.0% |
14.6% |
16.0% |
-134 bp |
Adjusted EBITDA Margin |
14.9% |
15.5% |
-63 bp |
-51 bp |
62.3 |
67.6 |
-7.9% |
Adjusted EBITA |
128.1 |
140.2 |
-8.6% |
-5.8% |
13.6% |
15.3% |
-163 bp |
Adjusted EBITA Margin |
14.0% |
14.8% |
-88 bp |
-76 bp |
52.2% |
55.1% |
-293 bp |
Conversion Margin |
53.2% |
55.5% |
-226 bp |
-192 bp |
EMEA revenue declined by 2.9% (-0.8% in constant currency) to
During the first half of the year, we completed the acquisition of Oktrade and DBH, strengthening our lateral value chain for the Personal Care market in
Gross profit declined by 4.7% year-on-year (-2.5% in constant currency) to
Q2 2024 |
Q2 2023 |
Reported Change |
(in millions of €) |
H1 2024 |
H1 2023 |
Reported Change |
Constant Currency |
415.3 |
376.5 |
10.3% |
Revenue |
786.7 |
734.9 |
7.1% |
5.8% |
101.4 |
85.3 |
18.8% |
Gross Profit |
193.7 |
176.2 |
9.9% |
9.1% |
24.4% |
22.7% |
175 bp |
Gross Profit Margin |
24.6% |
24.0% |
63 bp |
76 bp |
57.1 |
53.9 |
5.8% |
Adjusted EBITDA |
106.2 |
105.3 |
0.9% |
0.3% |
13.7% |
14.3% |
-58 bp |
Adjusted EBITDA Margin |
13.5% |
14.3% |
-83 bp |
-73 bp |
53.3 |
51.2 |
4.1% |
Adjusted EBITA |
98.5 |
100.0 |
-1.5% |
-2.0% |
12.8% |
13.6% |
-77 bp |
Adjusted EBITA Margin |
12.5% |
13.6% |
-109 bp |
-98 bp |
52.6% |
60.0% |
-745 bp |
Conversion Margin |
50.9% |
56.7% |
-588 bp |
-572 bp |
Revenue in the
In H1 2024,
Gross profit in the region increased by 9.9% to
Q2 2024 |
Q2 2023 |
Reported Change |
(in millions of €) |
H1 2024 |
H1 2023 |
Reported Change |
Constant Currency |
222.2 |
228.4 |
-2.7% |
Revenue |
441.8 |
461.9 |
-4.4% |
-0.9% |
45.1 |
43.2 |
4.3% |
Gross Profit |
92.2 |
88.3 |
4.4% |
7.7% |
20.3% |
18.9% |
137 bp |
Gross Profit Margin |
20.9% |
19.1% |
176 bp |
171 bp |
24.9 |
21.7 |
14.3% |
Adjusted EBITDA |
49.0 |
45.0 |
9.0% |
12.3% |
11.2% |
9.5% |
167 bp |
Adjusted EBITDA Margin |
11.1% |
9.7% |
136 bp |
134 bp |
22.6 |
19.8 |
14.4% |
Adjusted EBITA |
44.8 |
41.2 |
8.6% |
11.9% |
10.2% |
8.7% |
152 bp |
Adjusted EBITA Margin |
10.1% |
8.9% |
121 bp |
119 bp |
50.2% |
45.8% |
441 bp |
Conversion Margin |
48.6% |
46.7% |
186 bp |
186 bp |
Revenue in APAC declined by 4.4% to
During the first half of the year, we completed the acquisition of Agspec, a leading distributor of crop nutrition, crop protection and specialty agricultural products in
Gross profit in the region grew 4.4% to
Holding companies
Q2 2024 |
Q2 2023 |
Reported Change |
|
H1 2024 |
H1 2023 |
Reported Change |
Constant Currency |
-8.5 |
-9.2 |
-7.2% |
Adjusted EBITA (in millions of €) |
-17.4 |
-18.0 |
-3.4% |
-3.4% |
-0.8% |
-0.9% |
10 bp |
As % of Group Revenues |
-0.8% |
-0.8% |
3 bp |
4 bp |
Operating costs at the Group’s holding companies, relating to the Group’s non-operating entities as well as the head office in
OUTLOOK
As global political and economic uncertainty persists, we remain committed to managing our costs whilst also ensuring that we are well-positioned to benefit from a market recovery, the timing of which remains uncertain.
The Group has expanded its operational and geographic footprint over the last three years, strengthening its commercial and technical network and developing new competencies within the specialty chemical & food ingredients distribution. Management will provide an update on our strategy at our annual investor laboratory event in September.
FINANCIAL REVIEW
Q2 2024 |
Q2 2023 |
Reported Change |
(in millions of €) |
H1 2024 |
H1 2023 |
F/X Translation |
M&A Growth Contribution |
Organic Growth |
Total Growth |
1,094.6 |
1,048.4 |
4.4% |
Revenue |
2,145.7 |
2,141.2 |
-1.2% |
5.8% |
-4.4% |
0.2% |
265.9 |
251.3 |
5.8% |
Gross Profit |
526.5 |
517.1 |
-1.4% |
6.7% |
-3.5% |
1.8% |
129.7 |
129.4 |
0.2% |
Adjusted EBITA |
254.0 |
263.4 |
-2.1% |
6.6% |
-8.1% |
-3.6% |
Q2 2024 |
Q2 2023 |
Reported Change |
(in millions of €) |
H1 2024 |
H1 2023 |
Reported Change |
Constant Currency |
679.6 |
647.9 |
4.9% |
Life Sciences |
1,348.4 |
1,316.9 |
2.4% |
3.8% |
415.0 |
400.5 |
3.6% |
Industrial Chemicals |
797.3 |
824.4 |
-3.3% |
-2.3% |
1,094.6 |
1,048.4 |
4.4% |
Group Revenue |
2,145.7 |
2,141.2 |
0.2% |
1.5% |
265.9 |
251.3 |
5.8% |
Gross Profit |
526.5 |
517.1 |
1.8% |
3.2% |
24.3% |
24.0% |
32 bp |
Gross Profit Margin |
24.5% |
24.1% |
39 bp |
42 bp |
140.5 |
137.5 |
2.2% |
Adjusted EBITDA |
274.8 |
279.2 |
-1.6% |
0.5% |
12.8% |
13.1% |
-28 bp |
Adjusted EBITDA Margin |
12.8% |
13.0% |
-23 bp |
-13 bp |
129.7 |
129.4 |
0.2% |
Adjusted EBITA |
254.0 |
263.4 |
-3.6% |
-1.5% |
11.8% |
12.3% |
-50 bp |
Adjusted EBITA Margin |
11.8% |
12.3% |
-46 bp |
-36 bp |
48.8% |
51.5% |
-273 bp |
Conversion Margin |
48.2% |
50.9% |
-269 bp |
-235 bp |
106.8 |
106.1 |
0.7% |
Operating Profit |
214.7 |
225.0 |
-4.6% |
-2.9% |
55.6 |
50.7 |
9.6% |
Net Profit |
100.1 |
109.2 |
-8.3% |
-8.7% |
Revenue
Revenue in H1 2024 was stable compared to the prior year at
Revenue in Life Sciences was
Profitability
In H1 2024, gross profit increased by 1.8% to
Net financial expense in H1 2024 was broadly stable at
Net profit was
(in millions of €) |
H1 2024 |
H1 2023 |
Operating profit |
214.7 |
225.0 |
Net Financial Expense |
-72.4 |
-71.2 |
Financial Income |
15.3 |
3.4 |
Financial Expense |
-87.7 |
-74.6 |
Interest Expense on Bank Loans and Overdrafts |
-49.4 |
-40.2 |
Interest Lease Commitments |
-4.2 |
-2.0 |
Other Financial Cost |
-34.1 |
-32.4 |
Profit Before Tax |
142.3 |
153.8 |
Tax Expense |
-42.2 |
-44.6 |
Net Profit |
100.1 |
109.2 |
|
|
|
Earnings per share |
0.39 |
0.44 |
Cash earnings per share |
0.56 |
0.60 |
Cash Flow and Financing
Net working capital to revenue normalized for acquisitions was 15.4% at the end of
Free cash flow decreased by 44.3% to
Net debt was
(in millions of €) |
H1 2024 |
H1 2023 |
Operating Cash Flow |
153.4 |
250.2 |
Free Cash Flow |
136.5 |
245.2 |
FCF Conversion |
53.3% |
92.2% |
|
|
|
|
15.4% |
15.4% |
Net Indebtedness |
1,393.7 |
1,430.2 |
Leverage Ratio |
2,7x |
2,6x |
ALTERNATIVE PERFORMANCE MEASURES
Throughout its financial communication (Annual and Interim reports, website, press releases, presentations, etc.),
APPENDIX
All figures and tables contained in this appendix have been extracted from
The statutory auditor,
For the condensed consolidated interim financial statements for the first six months of 2024 and the review report of the statutory auditor we refer to
Consolidated income statement for the period ended 30 June
(in thousands of €) |
Jan- |
Jan- |
Revenue |
2,145,661 |
2,141,225 |
Other operating income |
12,832 |
12,559 |
Total income |
2,158,493 |
2,153,784 |
Costs for goods and consumables |
-1,632,026 |
-1,636,681 |
Gross profit |
526,467 |
517,103 |
Employee benefits expenses |
-153,210 |
-149,709 |
External services and other expenses |
-102,445 |
-94,002 |
Depreciation of tangible assets |
-20,829 |
-15,796 |
Amortization of intangible assets |
-35,300 |
-32,637 |
Operating profit / loss (-) |
214,683 |
224,959 |
Financial income |
15,321 |
3,404 |
Financial expenses |
-87,718 |
-74,603 |
Net financial expense |
-72,397 |
-71,199 |
Profit / loss (-) before tax |
142,286 |
153,760 |
Income tax income / expense (-) |
-42,156 |
-44,579 |
Net profit / loss (-) for the period from continuing operations |
100,130 |
109,181 |
|
|
|
Attributable to: |
|
|
Equity holders of the parent |
94,822 |
103,458 |
Non-controlling interests |
5,308 |
5,723 |
Net profit / loss (-) for the period |
100,130 |
109,181 |
|
|
|
|
in € |
in € |
Basic earnings per share |
0.39 |
0.44 |
Diluted earnings per share |
0.39 |
0.44 |
Consolidated statement of financial position
(in thousands of €) |
|
|
Assets |
|
|
|
2,473,548 |
2,409,251 |
Intangible assets |
1,366,913 |
1,349,133 |
Property, plant and equipment |
68,636 |
73,577 |
Right of Use assets |
170,682 |
123,048 |
Investments in associates |
285 |
285 |
Other financial assets |
1,518 |
7,749 |
Deferred tax assets |
17,305 |
15,693 |
Total non-current assets |
4,098,887 |
3,978,736 |
|
|
|
Inventories |
607,014 |
562,790 |
Trade and other receivables |
677,404 |
521,896 |
Income tax receivables |
8,465 |
23,872 |
Other financial assets |
4,717 |
60 |
Cash and cash equivalents |
384,492 |
484,874 |
Total current assets |
1,682,092 |
1,593,492 |
Total assets |
5,780,979 |
5,572,228 |
|
|
|
Equity |
|
|
Share capital |
5,880,000 |
5,880,000 |
Reserves |
-3,954,893 |
-3,927,077 |
Retained earnings |
669,904 |
459,372 |
Unappropriated result |
94,822 |
177,704 |
Issued capital and reserves attributable to owners of the parent |
2,689,833 |
2,589,999 |
Non-controlling interests |
88,305 |
86,579 |
Total equity |
2,778,138 |
2,676,578 |
|
|
|
Loans and borrowings |
1,553,323 |
1,550,634 |
Lease obligations |
144,894 |
100,347 |
Employee benefit obligations |
12,846 |
13,637 |
Provisions |
2,731 |
3,158 |
Other non-current liabilities |
30,117 |
69,816 |
Deferred tax liabilities |
222,840 |
218,306 |
Total non-current liabilities |
1,966,751 |
1,955,898 |
|
|
|
Bank overdrafts |
28,834 |
18,286 |
Loans and borrowings |
43,125 |
80,560 |
Lease obligations |
28,236 |
26,271 |
Provisions |
3,118 |
3,670 |
Income tax payables |
19,360 |
11,495 |
Trade and other payables |
913,417 |
799,470 |
Total current liabilities |
1,036,090 |
939,752 |
Total liabilities |
3,002,841 |
2,895,650 |
Total equity and liabilities |
5,780,979 |
5,572,228 |
Consolidated statement of cash flows
(in thousands of €) |
Jan- |
Jan- |
Cash flows from operating activities |
|
|
Net profit / loss (-) for the period |
100,130 |
109,181 |
Adjustments for: |
|
|
Depreciation, amortization and impairment expenses |
56,128 |
48,432 |
Net financial expense |
72,397 |
71,199 |
Cost of share-based payment |
989 |
861 |
Income tax income / expense |
42,156 |
44,579 |
Change in inventories |
-37,361 |
37,147 |
Change in trade and other receivables and other investments |
-160,204 |
-35,814 |
Change in trade and other payables |
81,070 |
-28,030 |
Change in provisions |
-1,906 |
2,676 |
Cash flow from operating activities |
153,399 |
250,231 |
|
|
|
Interest received |
9,279 |
2,243 |
Income tax paid |
-22,196 |
-47,666 |
Net cash flow from operating activities |
140,482 |
204,808 |
|
|
|
Cash flow from investing activities |
|
|
Acquisition of property, plant and equipment and intangible assets |
-5,469 |
-5,771 |
Acquisition of subsidiaries, net of cash acquired |
-122,033 |
-557,640 |
Net cash flow from investing activities |
-127,502 |
-563,411 |
|
|
|
Cash flows from financing activities |
|
|
Payments of lease obligation |
-18,572 |
-13,168 |
Dividend payment to shareholders of the group |
- |
-47,690 |
Purchase of treasury shares |
-2,507 |
-3,408 |
Capital increase |
- |
200,000 |
Expenses related to capital increase |
- |
-2,223 |
Interest paid |
-62,287 |
-36,663 |
Proceeds from loans and borrowings |
29,558 |
623,864 |
Repayments of loans and borrowings |
-64,203 |
-204,810 |
Transaction costs related to loans and borrowings |
- |
-7,715 |
Other cash flows from financing activities |
-4,432 |
2,126 |
Net cash flow from financing activities |
-122,443 |
510,313 |
|
|
|
Net (decrease) increase in cash and cash equivalents |
-109,463 |
151,710 |
|
|
|
Effect of exchange rate fluctuations on cash held |
-1,467 |
581 |
Cash and cash equivalents minus Bank overdraft at beginning of the period |
466,588 |
237,748 |
|
|
|
Cash and cash equivalents minus Bank overdraft at |
355,658 |
390,039 |
NOTES AND DISCLAIMER
About
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Important disclaimer:
This announcement may contain statement relevant to
The forward-looking statements and estimates contained herein represent the judgement of and are based on the information available to the Company’s management as of the date of this announcement. They involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements.
These forward-looking statements should not be considered as guarantees for future performance of the
The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in any other document published by the Company with the
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Azelis Investor Relations
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