- Q1 2024 RESULTS PRESENTATION
- May 14th, 2024
Executive Summary
Q1 2024 key trends and figures
Q1 2024 Sales growing +1.9% excluding FX at €103.9m, signaling a gradual volume recovery
€24.3m adjusted EBITDA, +7.7% vs. previous year, with 23.4% margin vs. 21.7% in Q1 2023
Adjusted Net Income excl. FX gains/losses(1) growing +7.7% YoY, reaching 9.5% margin at €9.9m
€254.2m Adjusted NFP(2) as of March 2024, on track with de-leverage targets, with Leverage Ratio(3) at
2.63x
(1) Excluding FX impact on financial charges and related tax effects
(2) | Adjusted NFP calculated considering the €75.0m subordinated shareholder loan and related interests as equity (not financial liability) | 2 |
(3) | Leverage ratio calculated as Adjusted NFP /L12M Adjusted EBITDA | |
Q1 2024 Results At-a-Glance
Organic growth led by Safety division, profitability recovery on track
SALES
Adjusted EBITDA and %
Adjusted NFP and Leverage
€m | Organic | 103.9 | Organic |
104.0 | (excl. FX) | growth | |
16.3 | +1.9% | ||
Reported | 18.3 | +14.0% | |
17.2 | 16.5 | ||
-0.1% | -3.2% |
€m
+7.7%
22.6
24.3
€m
313.9 290.0
252.1 254.2
21.7%23.4%
3.75x
3.37x
70.5 | 69.1 | +0.3% | 2.65x | 2.63x |
Q1 2023 | Q1 2024 | Q1 2023 | Q1 2024 | Q1 2023 | H1 2023 | FY 2023 | Q1 2024 | ||||||||
Healthcare&Life Sciences | Energy&Mobility | Health&Safety | Adj. EBITDA | margin % | Adj. NFP (1) | Leverage (2) | |||||||||
- Q1 2024 sales growing +1.9% excluding FX, with strong performance by Health & Safety division
- Adj. EBITDA growing +7.7% YoY to €24.3m, with 170 bps of margin accretion thanks to profitability recovery actions
- Stable Adjusted NFP, on track with de-leverage targets, with leverage ratio at 2.63x
(1) | Adjusted NFP calculated considering the €75.0m subordinated shareholder loan and related interests as equity (not financial liability) | 3 |
(2) | Leverage ratio calculated as Adjusted NFP /L12M Adjusted EBITDA | |
Sales - Q1 2024 vs. Q1 2023
+1.9% YoY organic growth, supported by volume recovery and pricing
SALES - Q1 2023 TO Q1 2024 BRIDGE
€m
• +1.9% organic growth (excl. FX) vs. Q1 2023, supported by a gradual volume recovery from de-stocking and pricing
Organic growth: +1.9%
4
Sales - Q1 2024 Performance by Division
Safety division strong order momentum leading the organic growth
Healthcare & Life Sciences
€m
Organic | Organic | ||
70.5 | (excl. FX) | 69.1 | |
growth | |||
+0.3% | |||
9.1 | 8.0 | -11.1% | |
7.1 | Reported | 7.5 | +6.2% |
-1.9% | |||
54.3 | 53.7 | +1.4% |
Q1 2023 | Q1 2024 | |||||
Liquid | Air & Gas | Labs | ||||
Health & Safety
€m
Organic
Organic
+14.0% 18.3 growth
16.3
1.2
0.9 Reported
+12.4%
15.3 | 17.1 | +13.4% |
Q1 2023 | Q1 2024 | |||
Pers. Safety | Air Safety | |||
Energy & Mobility
€m | ||||||||||||
Organic | Organic | |||||||||||
17.2 | -3.2% | |||||||||||
16.5 | growth | |||||||||||
4.5 | Reported | 4.3 | -2.7% | |||||||||
-4.1% | ||||||||||||
5.0 | 5.0 | |||||||||||
+1.7% | ||||||||||||
7.7 | 7.2 | -6.6% | ||||||||||
Q1 2023 | Q1 2024 | |||||||||||
Power&Drive | Safety&Elect. | Sport&Utility | ||||||||||
- Stable Healthcare sales (+0.3% organic excluding FX, -1.9% reported), with solid growth by Air & Gas (+5.1% and +6.2% organic), +1.4% organic growth for Liquid (-1.1% reported), and weak performance of Labs (-12.6%,-11.1% organic)
- Safety division organic sales up +14.0% YoY (+12.4% reported), on the back of strong order momentum
- Mobility division (-4.1%,-3.2% organic) gradually recovering from client de-stocking
5
Adj. EBITDA Margin - Q-on-Q Evolution
Q-on-Q profitability recovery continues
ADJ. EBITDA MARGIN - Q3 2022 - Q1 2024 QUARTERLY EVOLUTION
€m
23.3% | 23.4% |
22.1% | 21.7% |
19.4% |
15.9%
Q3 2022 | Q3 2023 | Q4 2022 | Q4 2023 | Q1 2023 | Q1 2024 | ||||||||||||||
Adj. EBITDA % | Adj. EBITDA % | ||||||||||||||||||
- Continuous Q-on-Q EBITDA % recovery from Q3 2022 lows
- Margin accretion driven by pricing and industrial efficiencies
- Recovery trend set to continue in FY2024
6
Adj. EBITDA - Q1 2024 vs. Q1 2023
+9.7% YoY organic growth excl. FX
ADJ. EBITDA - Q1 2023 TO Q1 2024 BRIDGE
€m
21.7%
ADJUSTED EBITDA % 170bps of margin accretion
Organic growth: +9.7%
23.4%
- Q1 2024 Adj. EBITDA growing +7.7% vs. Q1 2023 and +9.7% on excluding FX impact
- Positive contribution from both price and volume/mix
7
Adj. Net Income - Q1 2024 vs. Q1 2023
+7.7% YoY growth excl. FX impact
Adj. Net Income
€m
13.0
12.5%
6.1
5.9%
Q1 2023 | Q1 2024 | |||
Adj. Net Income | margin % | |||
Adj. Net Income Excl. FX Gains/Losses
€m
+7.7%
9.9
9.2
9.5%
8.8%
Q1 2023 | Q1 2024 | |
Adj. Net Income Excl. FX Gain/Losses | margin % | |
- Adjusted Net Income is impacted by FX gains and losses, mostly non-cash items related to the mark-to-market of USD denominated intercompany loans
- Q1 2023 Adjusted Net Income includes €4.0m of FX losses
- Q1 2024 Adjusted Net Income includes €4.1m of FX gains(1)
- Net Profitability, excl. FX impact on financial charges and related tax effects, growing in line with Adj. EBITDA
(1) EUR/USD exchange rate as of 31/12/2023: 1.1045. EUR/USD exchange rate as of 31/03/2024: 1.0811. Detailed calculation in appendix. | 8 |
Adj. Net Financial Position - Q1 2024 vs. FY 2023
Limited NWC absorption despite seasonality
ADJUSTED NET FINANCIAL POSITION - FY 2023 TO Q1 2024 BRIDGE
€m
2.65x
ADJUSTED LEVERAGE RATIO
2.63x
• Limited NWC absorption (€4.7m) despite the adverse seasonality
• €9.4m capex including €3.5m extraordinary investments related to the new Chinese plant
9
2024 Outlook and Guidance
Volume recovery to accelerate in Q32024, FY 2024 guidance confirmed
CURRENT
TRADING AND 2024 OUTLOOK
Q2 2024: continue the Q1 gradual volume recovery trend across divisions
Q3 2024: significant volume acceleration vs. Q3 2023 expected
Profitability recovery on track, supported by efficiency actions in progress
FY 2024
GUIDANCE
SALES
Adj. EBITDA %
Low-to-mid single digit growth vs. FY 2023
100-200 bps of margin accretion vs. FY 2023
Adj. Leverage Ratio (x)
In the region of 2.0x
10
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GVS S.p.A. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 12:54:13 UTC.