• Q2 2024 revenue of EUR 128.6 million, down 6% from EUR 136.9 million in Q2 2023
• Normalized Q2 2024 EBITDA at EUR 13.9 million (Q2 2023: EUR 14.0 million)
• Reported net profit from continuing operations in HY1 2024 of EUR 5.2 million (HY1 2023: EUR 9.9 million)
• Strong emphasis on cashflow; leverage ratio at 2.8, unchanged from Q2 2023 (Q1 2024: 2.7)
• Kendrion will become a pure-play industrial company following the sale of the Automotive business in Europe and United States to Solero Technologies; closing expected at the end of Q3 2024
Joep van Beurden, Kendrion CEO:
"We had a solid first six months of 2024, particularly considering the ongoing challenging market, especially in Germany. This resulted in lower revenues for our Industrial business, partly compensated by growth in Automotive. We maintained our focus on the added value margin, which improved by 80 basis points, with contributions from both the Industrial and Automotive segments. We implemented strict cost control measures, particularly in Industrial Brakes, which remained impacted by the ongoing market slowdown. For Kendrion's total operations, this led to a stable normalized EBITDA of EUR 30.0 million for the first half of the year, representing 11.5% of revenue, a slight increase compared to the same period in 2023. For our continued operations, we realized normalized EBITDA of EUR 20.7 million, or 13.5% of revenue, despite the lower industrial revenues. Our focus on cash flow management remained strong, keeping both net debt and our leverage ratio at steady levels, while also paying out EUR 4.2 million in cash dividends.
We are making progress in carving out our European and US Automotive business for the sale to Solero Technologies and anticipate closing the transaction by the end of Q3 2024. The sale of our Automotive franchise reflects a significant strategic decision to focus exclusively on opportunities within our Industrial Brakes and Industrial Actuators and Controls Business Groups in Europe, China and the US. We expect that the divestment will enhance our ability to invest in substantial opportunities within the Industrial sector, driving further profitable growth. During our Capital Markets Day on 5 September 2024, we will deliver a strategic update on the new, post-automotive Kendrion, share progress towards the 2025 financial targets, and announce new financial goals.
For the near term, we anticipate an economic environment similar to HY1 2024. We will continue our strict cost measures in Industrial Brakes and maintain our focus on the added value margin. Looking ahead, we maintain optimistic about our long-term prospects as a pure-play Industrial company focused on the global shift towards cleaner energy and other opportunities. We look forward to sharing our plans and outlining our medium- and long-term ambitions at our Capital Markets Day on 5 September this year."
Press release:
https://www.kendrion.com/en/about-kendrion/investor-relations/press-releases/press-releases-detail-page/q2-and-hy-results-2024
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