A cautious market is holding back sales for the quarter.
SECOND QUARTER 2024
- Net sales amounted to EUR 46,213 thousand (50,075), a decrease of 7.7% compared with the corresponding period last year. Organic growth amounted to -5.9%.
- Operating earnings (EBIT) amounted to EUR 463 thousand (2,603), corresponding to an EBIT margin of 1.0% (5.2).
- Operating earnings before depreciation (EBITDA) amounted to EUR 2,311 thousand (4,151), corresponding to an EBITDA margin of 5.0% (8.3).
- Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 3,081 thousand (5,398), corresponding to an underlying EBITDA margin of 6.7% (10.8).
- Order intake amounted to EUR 54,385 thousand (53,225), an increase of 2.2% compared with the same period last year. Organic growth amounted to 1.6%.
- Earnings per share amounted to EUR -61.48 (-80.42).
JANUARY – JUNE 2024
- Net sales amounted to EUR 79,139 thousand (80,609), a decrease of 1.8% compared with the corresponding period last year. Organic growth amounted to -0.4%.
- Operating earnings (EBIT) amounted to EUR -896 thousand (-998), corresponding to an EBIT margin of -1.1% (-1.2).
- Operating earnings before depreciation (EBITDA) amounted to EUR 2,684 thousand (2,128), corresponding to an EBITDA margin of 3.4% (2.6).
- Underlying earnings before depreciation (underlying EBITDA) amounted to EUR 3,946 thousand (3,655), corresponding to an underlying EBITDA margin of 5.0% (4.5).
- Order intake amounted to EUR 92,607 thousand (96,555), a decrease of 4.1% compared with the same period last year. Organic growth amounted to -4.6%.
- Earnings per share amounted to EUR -176.63 (-207.78).
COMMENTS FROM THE CEO
The second quarter of the year shows that market conditions are not yet at the level we expect them to be over time. The underlying need for ViaCon’s solutions continues to be strong, but there is still some hesitation in ordering in the market, which has had an impact on sales and earnings for the quarter. The main reason for this hesitation is the macroeconomic uncertainty and the geopolitical situation. We expect a gradual improvement in the second half of the year, but we are also prepared for continued volatility, which means that we are now carrying out activities to further strengthen our competitiveness. There is still a need for infrastructure investments around Europe and the demand for sustainable solutions is increasing.
In the Polish infrastructure market, we have not yet seen the effect of the change of government that took place at the end of 2023, which meant that the previously frozen EU funds are gradually being made available to the country. We expect that the infrastructure investments that have been held back in recent years will gradually resume later this year, but especially in 2025 and the years after.
Volumes in the Turkish market have continued to be high also in the second quarter, the powerful earthquake in February 2023 together with new infrastructure projects, has led to a high demand for ViaCon’s innovative solutions, where fast installation and high durability are required.
Sales for the quarter amounted to EUR 46,213 thousand (50,075), a decrease of 7.7% compared to the previous year. Organic growth was -5.9%, adjusted for exchange rate effects, hyper-inflation adjustments, divestments and acquisitions. The difference between total growth and organic growth is due to currency effects and hyper-inflation adjustments.
Operating earnings (EBIT) amounted to EUR 463 thousand (2,603), corresponding to an EBIT margin of 1.0% (5.2). Adjusted operating earnings amounted to EUR 1,233 thousand (3,850), corresponding to an adjusted EBIT margin of 2.7% (7.7). Operating earnings have been affected by lower volumes in the GeoTechnical Solutions and StormWater Solutions business units.
Cash flow from operating activities for the quarter was lower compared with the corresponding period last year, mainly driven by lower operating earnings. Order intake during the quarter amounted to EUR 54,385 thousand (53,225), where the Bridges & Culverts Solutions business unit has had robust growth in order intake, while the cautious market situation has constrained order intake in GeoTechnical Solutions and StormWater Solutions.
Sustainability work plays a central role at ViaCon and we continue to make important progress in this area. A recognition of this is the GoGreen Pioneer award that ViaCon was awarded in May at IFAT, the world’s leading conference for the management of water, wastewater, waste and raw materials.
Whilst current market conditions are not yet where we expect them to be, we continue to see robust underlying demand for sustainable infrastructure solutions, which makes us cautiously optimistic regarding the second half of 2024 and beyond.
Stefan Nordström,
President and CEO, ViaCon Group
Presentation of the report
A live presentation of the financial results and development for the period followed by a Q&A session will be held as follows:
Date: August 29, 2024
Time: 14:00-15:00 CET
Presenters: CEO Stefan Nordström and CFO Philip Delborn
Link to webcast: https://www.finwire.tv/webcast/viacon-group/q2-2024/
The session will be recorded and available to watch on-demand via the link above.
The full report is published at www.viacongroup.com.