| 9M 2024 RESULTS HIGHLIGHTS |
| · Net revenues1 amounted to 1,906 million euros, an overall decrease of 14.7% compared to 9M 2023, organic, of which 632 million euros in Q3, down 13.7% YoY due to prolonged weak market demand. |
| · Adjusted EBIT1 amounted to 97 million euros, decreased by 56.4% compared to 9M 2023, of which 40 million euros were generated in Q3, down 43.9% YoY. Adjusted EBIT margin in Q3 reached 6.3%, up 200bps QoQ thanks to efficiency initiatives. |
| · Free cash flow at 14 million euros, improved versus -24 million euros in 9M 2023, of which 37 million euros was generated in Q3. First time with a 9M positive free cash flow since IPO. |
| · Net debt2 of 716 million euros, compared to 611 million euros as of year-end 2023, due to dividend payments, cash-out for the Egypt plant acquisition and buyback. |
| 2024 GUIDANCE AND MID-TERM VIEW |
| · 2024 guidance is confirmed. |
| · Organic net revenues guidance between -12% and -15% YoY on a like-for-like basis1. Due to the weak demand in Europe, mainly in Heating. |
| · Adjusted EBIT margin guidance circa 6%, due to revenue decrease, operating leverage, unfavourable country mix and labour cost inflation, partially offset by efficiency initiatives. |
| · Mid-term view remains intact. After a transitioning year, with very tough comparison and weak demand, in the mid-term, we expect a mid-single-digit organic growth thanks to market demand recovery. |
| Maurizio Brusadelli, Chief Executive Officer commented: “As expected market remained weak. We have successfully improved our margins from the previous quarter through a range of initiatives to reduce costs and reprioritization of investments. Additionally, our disciplined stock management has increased our cash flow. As we continue to deliver on our product and sustainability roadmaps, Ariston Group’s long-term profitable growth remains our top priority, favoured by the energy transition”. |
| The Board of Directors of Ariston Holding N.V. (MTA/EXM; Bloomberg ticker: ARIS IM) met today and approved the consolidated report for the nine months ending on September 30th 2024 (“9M 2024”). |
| 9M 2024 CONSOLIDATED RESULTS1 |
| Net revenue amounted to 1,905.9 million euros, a decrease of 15.1% compared to the 2,245.4 million euros registered in the first nine months of 2023, organic of -14.7% and foreign exchange effect of -0.4%. |
| €M |
9M 2024 |
9M 2023 |
Change |
| Thermal Comfort |
1,781.4 |
2,110.4 |
-15.6% |
| Burners |
63.9 |
66.4 |
-3.7% |
| Components |
60.6 |
68.6 |
-11.7% |
| Total |
1,905.9 |
2,245.4 |
-15.1% |
|
| €M |
9M 2024 |
9M 2023 |
Change |
| Europe |
1,354.6 |
1,663.1 |
-18.5% |
| Americas |
190.2 |
189.8 |
0.2% |
| Asia/Pacific & MEA |
361.1 |
392.5 |
-8.0% |
| Total |
1,905.9 |
2,245.4 |
-15.1% |
|
| EBITDA reached 131.8 million euros, -56.5% compared to the 302.8 million euros registered in 9M 2023, while EBIT amounted to 29.6 million euros, compared to the 219.3 million of 9M 2023 |
| These margins are also presented in an adjusted form which is more suitable to appreciate the trend of normal business operations, with the exclusion of costs or revenues not representative of them; the main significant adjustments for the period are the impairment of the Russian subsidiary (“Ariston Thermo Rus LLC”) and the PPA amortization related to past acquisitions. |
| Adjusted EBITDA amounted to 181.4 million euros, down by 39.8% compared to 301.4 million euros registered in 9M 2023, with a decrease in margin on net revenue from 13.4% to 9.5%, as a consequence of prolonged weak demand leading to negative operating leverage enhanced by destocking, country mix and labour inflation effects. This was partially mitigated by enhanced efficiency initiatives. |
| Adjusted EBIT amounted to 96.8 million euros, decreasing by 56.4% compared to the 222.2 million euros of 9M 2023. The corresponding margin on net revenue was down from 9.9% to 5.1%. |
| Free cashflow3 in the period amounted to 13.5 million euros, versus -24.3 million euros for 9M 2023. The improvement was driven by inventory reduction, with a lower net working capital absorption compared to 9M 2023 and CapEx optimization as part of efficiency initiatives. |
| Net Financial Indebtedness at the end of the period (calculated according to ESMA 32-382-1138 guidelines) went from 610.9 million euros on 31 December 2023 to 715.9 million euros, mainly due to dividends payment, Egypt plant acquisition and buyback. |
| For comparative purposes, applying the calculation method used before the adoption of ESMA guidelines, net financial indebtedness went from 575.0 to 691.6 million euros. The main differences are ESMA’s inclusion – among liabilities – of put & call options related to acquisitions, and the neutralization of positive mark-to-market from derivatives. |
| For the full document click the link below: |
| Ariston Holding N.V. |
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