Half Year 2024 CENIT AG Earnings Call Transcript
Key Points
- Cenit AG (FRA:CSH) reported a 13% increase in revenues, reaching close to EUR100 million for the first half of 2024.
- The company achieved a 5% organic growth, with discussions now focusing on the potential for 8% to 10% organic growth.
- Order backlog increased by more than 20% compared to last year, indicating strong future revenue potential.
- Free cash flow improved by EUR2 million, reaching EUR9.4 million, signaling strong cash management.
- Proprietary software sales increased by 21.7%, highlighting growth in high-margin areas.
- EBITDA only increased by 0.9%, with significant M&A-related costs impacting profitability.
- EPS took a major hit, declining by 92% due to higher financial expenses and tax costs.
- The EBIT dropped by 23.4%, partly due to the deconsolidation of Senator Japan and increased M&A costs.
- The company's major customers, such as Volkswagen and Airbus, are under pressure, which could impact future revenues.
- The acquisition in the US is not expected to contribute to EBIT this year due to PPA and M&A-related costs.
Let's start, on our first half figures 2024. And I think that we have quite a good news, as you might have seen already this morning when we released the figures. As you see, we have a nice increase of 13% in revenues from EUR87 million to close to EUR100 million for the first time that by this time of the year were close to EUR100 million. And the reason is, of course, as well the acquisitions that we have done in the last year that this year are for the first time included in those figures. So this includes, of course, CCE., which we have acquired by beginning of this year. But of course, also if there are P and ABC figures of the first half year that were not included in the last year.
Now what is the other very important messages as well. We have cleaned by all kinds of acquisitions. The very strong 5% organic growth. As some of you know, I've had for quite a while a discussion with my team when I started here, whether 5% organic growth is possible or not. And the good news is now we're having the discussion
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