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D'Ieteren Group (SIETY) (H1 2024) Earnings Call Highlights: Strong Cash Flow and Strategic ...

In This Article:

  • Adjusted Profit Before Tax Group Share: Up 6.4% to EUR585.5 million.

  • Free Cash Flow Group Share: Nearly tripled to EUR540 million in H1 2024.

  • Revenue Growth: Overall top line growth of 5.8% driven by PHE (7%), TVH (6.8%), Belron (6.7%), and D'Ieteren Auto (4.8%).

  • Adjusted Operating Result Group Share: Increased by 6.7%.

  • Net Cash Position: Approximately EUR1.1 billion at the Group level.

  • Belron Leverage Ratio: 5.5 times with plans for deleveraging.

  • D'Ieteren Automotive Market Share: Increased to 23.8% in Belgium.

  • D'Ieteren Automotive Free Cash Flow: EUR228 million, a significant improvement from the previous year.

  • PHE Revenue: EUR1.387 billion, a 7% increase year-on-year.

  • TVH Revenue: Close to EUR850 million, representing 6.8% year-on-year growth.

  • Moleskine Sales: Declined by 8% to EUR52.9 million.

  • Exceptional Dividend Proposal: EUR74 per share, totaling about EUR4 billion.

Release Date: September 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • D'Ieteren Group (SIETY) announced a planned reorganization of family shareholding to ensure long-term stability, which is expected to enhance strategic execution and value creation.

  • The company proposed an extraordinary dividend of EUR74 per share, rewarding shareholders for their continued support.

  • D'Ieteren Group (SIETY) reported a 6.4% increase in adjusted profit before tax Group share, reaching EUR585.5 million.

  • Free cash flow generation nearly tripled, reaching EUR540 million in the first half of 2024.

  • The company confirmed its mid- to high single-digit growth outlook for adjusted PBT Group share for the entire year.

Negative Points

  • Moleskine experienced an 8% decline in sales and a significant drop in adjusted operating results, leading to an impairment charge of EUR131 million.

  • Belron's margin decreased to 21.2% in H1 2024, down from 21.9% in H1 2023, due to lower volume months in the US and increased marketing expenses.

  • D'Ieteren Group (SIETY) plans to take on EUR1 billion of debt, which could impact its financial flexibility.

  • The Belgium market for new car registrations is expected to slightly decline in 2024, potentially affecting D'Ieteren Automotive's performance.

  • TVH's market environment showed some softness, leading to a revised outlook for mid-single-digit organic top-line growth.

Q & A Highlights

Q: What is the basis for the transaction price of EUR223.75 in the family shareholding reorganization? A: The transaction price was set between the two-family shareholders themselves, and management was not involved in that discussion. It was a decision made at their level.