Half Year 2024 GEA Group AG Earnings Call Transcript
Key Points
- GEA Group AG (GEAGF) delivered organic sales growth of 1.6% in Q2 2024, driven by a strong service business.
- EBITDA before restructuring expenses increased by 4.7% year over year to EUR 201 million, with a significant margin expansion to 15.2%.
- The company raised its EBITDA margin and ROCE guidance for the full year 2024, indicating strong confidence in achieving financial targets ahead of schedule.
- GEA Group AG (GEAGF) was recognized as one of the world's most sustainable companies, ranking 33rd globally and 3rd in Germany by TIME and Statista.
- Positive credit rating changes from Fitch and Moody's, with Fitch raising the outlook from stable to positive and Moody's upgrading the long-term rating from Baa2 to Baa1.
- Order intake declined by 6.7% year over year to EUR 1.29 billion, impacted by postponements of larger orders and CapEx restraints from customers.
- Return on capital employed (ROCE) decreased slightly from 33.8% to 32.3% due to higher capital employed.
- Net liquidity decreased by EUR 33 million year over year to EUR 32 million, despite significant cash outflows for dividends and share buybacks.
- Translational FX effects negatively impacted order intake by EUR 44 million, particularly due to a strong euro against emerging market currencies like the Argentine peso and Turkish lira.
- New machine sales declined organically by 4.1% year over year, reflecting a decrease in order intake over the last four quarters.
Thank you very much and good afternoon, ladies and gentlemen, and thank you for joining us today for our second quarter 2024 earnings conference call.
With me on the call are Stefan Klebert, our CEO; and Bernd Brinker, our CFO. Stefan will begin today's call with the highlights of the second quarter and Bernd will then cover the business and financial review before Stefan takes over again for the outlook 2024. Afterwards, we open up the call for the Q&A session.
Please be aware of the cautionary language that is included in our safe harbor statement as in the material that we have distributed today.
And with that, I hand over to Stefan.
Thank you, Oliver, and good afternoon, everybody. It's my pleasure to welcome you to our conference call today. In the second quarter of 2024, GEA has once again delivered organic sales growth and a significant EBITDA margin expansion. Order intake
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