Quadient expected to grow organically in 2024

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(Boursier.com) — The Group’s consolidated turnover Quadient reached 534 ME during the first half of 2024, which represents a published growth of +3.2% and an organic growth of +0.8% compared to the first half of 2023, levels in line with the Group’s expectations.

The gross margin rate decreased very slightly, from 74.8% in the first half of 2023 to 74.4% in the first half of 2024 due to a slight increase in the cost of sales and the impact of the acquisition of Frama.
The Group’s EBITDA reached €111 million in the first half of 2024, a level that is almost stable compared to the EBITDA for the first half of 2023. However, EBITDA recorded organic growth of +2.6% thanks to the solid improvement in the EBITDA of the Digital business, which more than offset the weaker performance of the Mail business. The Group’s EBITDA margin rate stands at 20.8% in the first half of 2024 (21.7% in the first half of 2023).

Current operating income (current EBIT) reached €61 million in the first half of 2024 (€65 million in the first half of 2023). It is down -6% in published data and in organic growth of +0.3%. The current operating margin stands at 11.5% of revenue in the first half of 2024 (12.6% in the first half of 2023).

Costs for optimizing structures and other operating costs amounted to €16 million in the first half of 2024 (€6 million in the first half of 2023). Operating income reached €45 million in the first half of the year (€59 million in the first half of 2023).

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The net cost of financial debt increased from €15 million in the first half of 2023 to €20 million in the first half of 2024, with the variable-rate portion of Quadient’s debt (around a third of the Group’s debt) being impacted by the rise in interest rates.

The net result of discontinued operations, which correspond to the Italian subsidiary dedicated to the Mail activity, amounted to 1 ME in the first half of 2024, this amount including additional charges linked to the ongoing process of putting this subsidiary up for sale.

The net income attributable to the Group after minority interests thus amounts to €24 million in the first half of 2024 (€36 million in the first half of 2023). Net income per share from continuing operations amounts to €0.74 in the first half of 2024 (€1.06 in the first half of 2023) and €1.05 per share on a diluted basis.

The Group’s net income per share amounts to 0.71 euros in the first half of 2024 (1.05 euros in the first half of 2023). The diluted Group’s net income per share amounts to 0.71 euros in the first half of 2024 (1.05 euros in the first half of 2023).

The change in working capital requirements generated a negative net cash flow of €19 million in the first half of 2024 compared to a negative net flow of €55 million in the first half of 2023. This improvement reflects a better level of cash collection. The Group also benefited in the first half of 2024 from the positive and non-recurring effect of VAT payment deferrals. In total, cash flows after investments represented a positive flow of €3 million in the first half of 2024 (-€15 million in the first half of 2023).
Net debt is increasing very slightly, amounting to 726 ME as of July 31, 2024 (709 ME as of January 31, 2024).

The Group has no significant debt maturities before 2025, the date corresponding to the maturity of its bond issue bearing an annual coupon of 2.25%.
Financial leverage (net debt/EBITDA ratio) remained roughly stable, increasing from 2.9x as of January 31, 2024 to 3.0x as of July 31, 2024. Equity stands at €1.064 billion as of July 31, 2024 (€1.069 billion as of January 31, 2024). The debt ratio stands at 68.2% as of July 31, 2024.

Perspectives

With organic growth recorded during the first half of 2024 in line with the Group’s expectations, Quadient confirms that it expects organic growth in revenue and current operating income (current EBIT) over the entire 2024 financial year.

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