Q2 2024 Kendrion NV Earnings Call Transcript
Key Points
- Continued automotive activities increased by 4% in Q2 and 18% in the first six months, driven by new projects in China.
- Normalized EBITDA for the first six months was 13.5%, showing a significant improvement from last year's total group margin of 10.9%.
- The company achieved a 6% reduction in operating costs, amounting to almost EUR4 million in the first six months.
- Free cash flow in the first six months was breakeven, a significant improvement from negative EUR12.5 million in the same period last year.
- Net debt reduced by EUR11.2 million compared to the same period last year, with a leverage ratio well below the covenant of 3.25.
- Revenue from continued operations decreased by 7% in Q2 and 8% in the first six months, particularly due to weak end markets in Germany and China.
- Normalized continued EBITDA margin decreased to 13.5% from 14.7% last year.
- The tax rate on normalized income increased to 30% compared to 24.7% last year.
- Industrial revenue decreased by 10% in Q2 2023, with IB down 16% year-on-year.
- Automotive revenue decreased by 2% in Q2, reflecting weaker market circumstances compared to the beginning of the year.
Good morning, everybody on this webcast, and Welcome to Kendrion's Q2 and first half 2024 results presentation. My name is Joep van Beurden, Kendrion's CEO, and with me here is Jeroen Hemmen, our CFO. First, this morning's agenda, Jeroen will start and review the Q2 and first-half 2024 results, after which I will take over and talk a bit about the current economic climate and give you an update of the progress we have made both strategically and operationally over the past periods.
Next, I will discuss the outlook for the remainder of the year and go to Q&A.
Before handing over to you, Jeroen, I would like to draw your attention to the following. Certain statements contained in this presentation constitute forward-looking statements, and these forward-looking statements rely on several assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside the company's control that could cause actual results to differ materially from such statements.
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