Half Year 2024 Hera SpA Earnings Call Transcript
Key Points
- Hera SpA (LTS:0NVV) reported a 16% increase in net profit, demonstrating strong financial performance.
- The company achieved a 2% growth in EBITDA, continuing the positive trend from the previous year.
- Hera SpA (LTS:0NVV) expanded its customer base by 125,000, with an additional 1 million customers from the Tutela market.
- The waste business saw a 9% growth, driven by increased volumes and prices, particularly in the industrial waste sector.
- The company maintained a stable net debt to EBITDA ratio, well below the threshold for financial soundness, indicating strong cash generation and financial stability.
- Revenues decreased by 33% due to lower energy prices and reduced intermediation activities.
- The energy supply business experienced a reduction in EBITDA due to the expiration of the super eco bonus.
- There is a natural migration of customers from the Tutela market to the liberalized market, which could impact customer retention.
- Financial charges were low in H1, but there is uncertainty about their impact in the second half of the year.
- The company faces challenges in maintaining margins in the industrial segment of the energy supply business due to increased competition.
Good afternoon, everybody. We're here with the usual team, our CEO, our CFO, and our Investor Relations Director for the H1 financial results, which our Board recently approved. These results confirm the good results posted in Q1, and they are in line with our business plan, the one we approved early this year. We're seeing in terms of the revenues as a production turnover, which is down by some 33% linked to the energy scenario, with lower prices on the supply side, a lower turnover. As you know, that is a positive element for us.
And we also had some lower intermediation activities. And therefore, this is the outcome. In terms of EBITDA, after the extraordinary growth we posted last year, we're continuing to grow that in Q2, which is in line with what we had seen in Q1 this year. We are now up to EUR733 million. This is a growth which is much like in Q1, increases in terms of percentages as we move down the lines in terms of EBITDA, plus 2%, EBIT is plus 2.8% that we'll be seeing further details on the following slides all the way
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