In This Article:
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Revenue: EUR291.5 million, down 11.7% compared to the same period of 2023.
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EBITDA Margin: 18.3% of sales, down from 22% in the first half of 2023.
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Net Profit: EUR27.8 million, down 30.9% from EUR40.3 million last year.
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Net Financial Position: EUR102 million, including EUR44 million for acquisition activities.
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CapEx: EUR13 million, up 64.6% from EUR7.9 million in the same period last year.
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EMEA Sales Decline: 18.1% at fixed exchange rates.
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North America Sales Growth: 12.4% net of foreign exchange.
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Latin America Sales Growth: 26.4% at fixed exchange rates.
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R&D Expense: Increased to target level of about 5% of sales.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carel Industries SpA (FRA:CIG) reported a gradual improvement in the refrigeration sector, particularly in North America, driven by market share increases and the momentum of natural refrigerants.
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The company maintained a strong EBITDA margin of 18.3% in the first half of 2024, despite a challenging market environment.
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Carel Industries SpA (FRA:CIG) is experiencing significant growth in North America, with a 12.4% increase in sales, particularly in data centers and electrification.
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The company has a strong pipeline for variable speed compressor technology in North America, with sales of inverters growing by approximately 50% in the first half of 2024.
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Carel Industries SpA (FRA:CIG) is investing heavily in R&D, reaching its target of more than 5% of sales, and is excited about multiple innovation directions.
Negative Points
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Revenues for the first half of 2024 declined by 11.7% compared to the same period in 2023, primarily due to poor performance in the EMEA region.
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The company faced a significant decline in the heat pump sector, with sales dropping by more than 50%, compounded by high stock levels and tough comparables.
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Carel Industries SpA (FRA:CIG) experienced a 26.7% decrease in EBITDA, impacted by negative operating leverage due to the revenue decline.
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The net profit for the first half of 2024 was EUR27.8 million, down 30.9% from the previous year, affected by operating results and financial charges.
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The EMEA region saw an 18.1% decline in sales at fixed exchange rates, with a sharp slowdown in heat pumps and a stagnant refrigeration market.
Q & A Highlights
Q: Can you provide insights into the revenue guidance for Q4, considering the weak performance in Q3? Is this based on current data or more of an optimistic outlook? A: We expect a gradual improvement in the second half, with Q3 likely close to Q2. This is based on normalization of stock levels in various verticals, excluding heat pumps, and tangible signs of improvement in refrigeration. We anticipate a sequential recovery leading to our full-year guidance.