• Turnover increased 1.1% organically to €446.3 million, with a very strong performance in Smart Manufacturing systems
• Substantial 32.2% organic increase of EBITA at €54.5 million in Q2 compared to Q1; EBITA organically equal to Q2 2023
Highlights H1 2024
• Turnover decreased organically by 1.6% to €867.2 million
• Substantial increase of added value to 51.8% (H1 2023: 49.1%) with improvements in all segments confirming strategic strength
• EBITA decreased organically by 11.3% to €95.8 million, due to sustained destocking effects, weaker market demand in certain end markets and start-up costs related to expansion of production capacity
• ROS at 11.0% (H1 2023: 12.6%)
• Order book up 8.5% to €1,052.8 million (December 31, 2023: €970.1 million); with strong growth in order book at Smart Connectivity systems
• Portfolio development with two divestments and three acquisitions well on track; completion of strategic investment program of €200 million
• Cost saving program to lower cost base with €15 million annually
Outlook
For the full year 2024, TKH expects organic growth in turnover and an EBITA excluding one-off income and expenses of between €210 million and €220 million. The 2023 EBITA, adjusted for divestments, amounted to €222 million.
Alexander van der Lof, CEO of technology company TKH: "The Q2 performance was considerably better than in Q1, and on a similar level as Q2 2023, supported by a strong performance in Smart Manufacturing systems. Smart Connectivity systems also showed quarterly sequential growth, yet strong headwinds in Digitalization, continued destocking effects in Energy, as well as start-up and ramp-up costs impacted EBITA. Smart Vision systems continued to be impacted by weak market conditions in Q2.
We managed to improve our added value across all segments, confirming the leadership positions of our differentiating technologies. In Q2 we won substantial contracts in Subsea and in the first month of H2 we were also awarded further, larger contracts in Smart Vision systems and in Smart Connectivity systems, which will contribute to our H2 2024 performance and turnover growth. Our innovative, differentiating and sustainable technologies were instrumental in securing these contracts.
Despite slower-than-anticipated growth in Smart Vision systems and expected prolonged weakness in Digitalization, we are on track to achieve a substantial improvement in profitability in H2 2024. We are well positioned to achieve further growth in results in 2025, supported by a robust order book. We are confident that the utilization of the strategic investments will contribute substantially, with most costs already in place.
We have introduced a cost saving program of around €15 million annually that will be implemented during the second half of this year and will have a positive effect on the result starting from 2025.
Our commitment to innovation differentiates us in the market and with our position in key megatrends we have created a robust foundation. The successful progress of Accelerate 2025 strategy supports the realization towards our targets.
Furthermore, with the strategic investment program completed, a large part of our commodity based portfolio divested, we are re-addressing our strategy in light of further value creation."
Press release:
https://www.tkhgroup.com/en/news/h1-2024-results/
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