Half Year 2024 Dalata Hotel Group PLC Earnings Call Transcript
Key Points
- Dalata Hotel Group PLC (FRA:DHG) reported a 6% increase in revenues to EUR302 million and a 4% increase in adjusted EBITDA to EUR108 million for the first half of 2024.
- The company achieved a strong return on invested capital of 12.6% for the six-month period ended June 30, 2024.
- Dalata Hotel Group PLC (FRA:DHG) announced an increase in interim dividends to EUR0.041 and a share buyback of EUR30 million.
- The company opened four new hotels in the UK, adding 400 more rooms to its portfolio, demonstrating its growth strategy.
- Dalata Hotel Group PLC (FRA:DHG) has a low gearing ratio of 1.3 times net debt over EBITDA, providing capacity for further growth opportunities.
- The EBITDA margin decreased to 39.4% from 40.6% in H1 2023, indicating a slight decline in profitability.
- Free cash flow for the six-month period was EUR48 million, which is behind the level achieved for the first half of 2023.
- The company faced significant increases in labor costs, with national minimum wage and national living wage in the UK rising by approximately 20%.
- RevPAR for the group decreased by 1% on a like-for-like basis, reflecting softer trading conditions.
- Profit after tax declined by 15% to EUR35.8 million, primarily due to the impact of adjusting items and underlying performance.
Good day and thank you for standing by. Welcome to Dalata Hotel Group PLC 2024 Half-year results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Dermot Crowley, CEO. Please go ahead.
Good morning, and thank you everyone, for joining us today as we announce Dalata's results of first six months of 2024. I'm here with Carol Phelan, our CFO; and Shane Casserly, our Deputy CEO. Carol will give financial review with market overview. While Shane will take us through our growth strategy. I by will then wrap up at the end with the outlook.
Turning to page 4 of the slide deck. Showing in the first half of 2024, and we saw what we expect is the impact of increasing supply [and open] the increase in the VAT rate environment and reduction in domestic consumer demand in Ireland and the UK. The additions to the portfolio in 2023 compensate for the
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