• Q1 2024 RESULTS PRESENTATION
  • May 14th, 2024

Executive Summary

Q1 2024 key trends and figures

Q1 2024 Sales growing +1.9% excluding FX at €103.9m, signaling a gradual volume recovery

€24.3m adjusted EBITDA, +7.7% vs. previous year, with 23.4% margin vs. 21.7% in Q1 2023

Adjusted Net Income excl. FX gains/losses(1) growing +7.7% YoY, reaching 9.5% margin at €9.9m

€254.2m Adjusted NFP(2) as of March 2024, on track with de-leverage targets, with Leverage Ratio(3) at

2.63x

(1) Excluding FX impact on financial charges and related tax effects

(2)

Adjusted NFP calculated considering the €75.0m subordinated shareholder loan and related interests as equity (not financial liability)

2

(3)

Leverage ratio calculated as Adjusted NFP /L12M Adjusted EBITDA

Q1 2024 Results At-a-Glance

Organic growth led by Safety division, profitability recovery on track

SALES

Adjusted EBITDA and %

Adjusted NFP and Leverage

€m

Organic

103.9

Organic

104.0

(excl. FX)

growth

16.3

+1.9%

Reported

18.3

+14.0%

17.2

16.5

-0.1%

-3.2%

€m

+7.7%

22.6

24.3

€m

313.9 290.0

252.1 254.2

21.7%23.4%

3.75x

3.37x

70.5

69.1

+0.3%

2.65x

2.63x

Q1 2023

Q1 2024

Q1 2023

Q1 2024

Q1 2023

H1 2023

FY 2023

Q1 2024

Healthcare&Life Sciences

Energy&Mobility

Health&Safety

Adj. EBITDA

margin %

Adj. NFP (1)

Leverage (2)

  • Q1 2024 sales growing +1.9% excluding FX, with strong performance by Health & Safety division
  • Adj. EBITDA growing +7.7% YoY to €24.3m, with 170 bps of margin accretion thanks to profitability recovery actions
  • Stable Adjusted NFP, on track with de-leverage targets, with leverage ratio at 2.63x

(1)

Adjusted NFP calculated considering the €75.0m subordinated shareholder loan and related interests as equity (not financial liability)

3

(2)

Leverage ratio calculated as Adjusted NFP /L12M Adjusted EBITDA

Sales - Q1 2024 vs. Q1 2023

+1.9% YoY organic growth, supported by volume recovery and pricing

SALES - Q1 2023 TO Q1 2024 BRIDGE

€m

• +1.9% organic growth (excl. FX) vs. Q1 2023, supported by a gradual volume recovery from de-stocking and pricing

Organic growth: +1.9%

4

Sales - Q1 2024 Performance by Division

Safety division strong order momentum leading the organic growth

Healthcare & Life Sciences

€m

Organic

Organic

70.5

(excl. FX)

69.1

growth

+0.3%

9.1

8.0

-11.1%

7.1

Reported

7.5

+6.2%

-1.9%

54.3

53.7

+1.4%

Q1 2023

Q1 2024

Liquid

Air & Gas

Labs

Health & Safety

€m

Organic

Organic

+14.0% 18.3 growth

16.3

1.2

0.9 Reported

+12.4%

15.3

17.1

+13.4%

Q1 2023

Q1 2024

Pers. Safety

Air Safety

Energy & Mobility

€m

Organic

Organic

17.2

-3.2%

16.5

growth

4.5

Reported

4.3

-2.7%

-4.1%

5.0

5.0

+1.7%

7.7

7.2

-6.6%

Q1 2023

Q1 2024

Power&Drive

Safety&Elect.

Sport&Utility

  • Stable Healthcare sales (+0.3% organic excluding FX, -1.9% reported), with solid growth by Air & Gas (+5.1% and +6.2% organic), +1.4% organic growth for Liquid (-1.1% reported), and weak performance of Labs (-12.6%,-11.1% organic)
  • Safety division organic sales up +14.0% YoY (+12.4% reported), on the back of strong order momentum
  • Mobility division (-4.1%,-3.2% organic) gradually recovering from client de-stocking

5

Adj. EBITDA Margin - Q-on-Q Evolution

Q-on-Q profitability recovery continues

ADJ. EBITDA MARGIN - Q3 2022 - Q1 2024 QUARTERLY EVOLUTION

€m

23.3%

23.4%

22.1%

21.7%

19.4%

15.9%

Q3 2022

Q3 2023

Q4 2022

Q4 2023

Q1 2023

Q1 2024

Adj. EBITDA %

Adj. EBITDA %

  • Continuous Q-on-Q EBITDA % recovery from Q3 2022 lows
  • Margin accretion driven by pricing and industrial efficiencies
  • Recovery trend set to continue in FY2024

6

Adj. EBITDA - Q1 2024 vs. Q1 2023

+9.7% YoY organic growth excl. FX

ADJ. EBITDA - Q1 2023 TO Q1 2024 BRIDGE

€m

21.7%

ADJUSTED EBITDA % 170bps of margin accretion

Organic growth: +9.7%

23.4%

  • Q1 2024 Adj. EBITDA growing +7.7% vs. Q1 2023 and +9.7% on excluding FX impact
  • Positive contribution from both price and volume/mix

7

Adj. Net Income - Q1 2024 vs. Q1 2023

+7.7% YoY growth excl. FX impact

Adj. Net Income

€m

13.0

12.5%

6.1

5.9%

Q1 2023

Q1 2024

Adj. Net Income

margin %

Adj. Net Income Excl. FX Gains/Losses

€m

+7.7%

9.9

9.2

9.5%

8.8%

Q1 2023

Q1 2024

Adj. Net Income Excl. FX Gain/Losses

margin %

  • Adjusted Net Income is impacted by FX gains and losses, mostly non-cash items related to the mark-to-market of USD denominated intercompany loans
    • Q1 2023 Adjusted Net Income includes €4.0m of FX losses
    • Q1 2024 Adjusted Net Income includes €4.1m of FX gains(1)
  • Net Profitability, excl. FX impact on financial charges and related tax effects, growing in line with Adj. EBITDA

(1) EUR/USD exchange rate as of 31/12/2023: 1.1045. EUR/USD exchange rate as of 31/03/2024: 1.0811. Detailed calculation in appendix.

8

Adj. Net Financial Position - Q1 2024 vs. FY 2023

Limited NWC absorption despite seasonality

ADJUSTED NET FINANCIAL POSITION - FY 2023 TO Q1 2024 BRIDGE

€m

2.65x

ADJUSTED LEVERAGE RATIO

2.63x

• Limited NWC absorption (€4.7m) despite the adverse seasonality

• €9.4m capex including €3.5m extraordinary investments related to the new Chinese plant

9

2024 Outlook and Guidance

Volume recovery to accelerate in Q32024, FY 2024 guidance confirmed

CURRENT

TRADING AND 2024 OUTLOOK

Q2 2024: continue the Q1 gradual volume recovery trend across divisions

Q3 2024: significant volume acceleration vs. Q3 2023 expected

Profitability recovery on track, supported by efficiency actions in progress

FY 2024

GUIDANCE

SALES

Adj. EBITDA %

Low-to-mid single digit growth vs. FY 2023

100-200 bps of margin accretion vs. FY 2023

Adj. Leverage Ratio (x)

In the region of 2.0x

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

GVS S.p.A. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 12:54:13 UTC.