Q2 2024 Carel Industries SpA Earnings Call Transcript
Key Points
- Carel Industries SpA (FRA:CIG) reported a gradual improvement in the refrigeration sector, particularly in North America, driven by market share increases and the momentum of natural refrigerants.
- The company maintained a strong EBITDA margin of 18.3% in the first half of 2024, despite a challenging market environment.
- Carel Industries SpA (FRA:CIG) is experiencing significant growth in North America, with a 12.4% increase in sales, particularly in data centers and electrification.
- The company has a strong pipeline for variable speed compressor technology in North America, with sales of inverters growing by approximately 50% in the first half of 2024.
- Carel Industries SpA (FRA:CIG) is investing heavily in R&D, reaching its target of more than 5% of sales, and is excited about multiple innovation directions.
- Revenues for the first half of 2024 declined by 11.7% compared to the same period in 2023, primarily due to poor performance in the EMEA region.
- The company faced a significant decline in the heat pump sector, with sales dropping by more than 50%, compounded by high stock levels and tough comparables.
- Carel Industries SpA (FRA:CIG) experienced a 26.7% decrease in EBITDA, impacted by negative operating leverage due to the revenue decline.
- The net profit for the first half of 2024 was EUR27.8 million, down 30.9% from the previous year, affected by operating results and financial charges.
- The EMEA region saw an 18.1% decline in sales at fixed exchange rates, with a sharp slowdown in heat pumps and a stagnant refrigeration market.
Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the CAREL Industries 2024 first half results conference call. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Francesco Nalini, CEO of CAREL Industries. Please go ahead, sir.
Thanks. Good afternoon and thank you for joining our call for the presentation of the first half 2024 results. I'm starting from page 4 with the main highlights of the period. As expected, the second quarter was essentially in line with the first since we had the continuation of the same trends we experienced in Q1. From now on, we expect a gradual improvement during the second half of the year. So in this first half, revenues were EUR291.5 million with a decline of 11.7% compared to the same period of 2023 or 15.8% on a like-for-like constant exchange rate basis.
This is mainly due to a poor performance of the EMEA area, basically related to the sharp decline in heat pumps
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