Q1 2024 Results - Investor Presentation slide image

Q1 2024 Results - Investor Presentation

Financial Review - Key Highights Good financial performance in Q1 2024 with 4.4% Network sales increase and increase in reported EBITDA for +1.3%. Other Financial, Operating and As Adjusted Information First Quarter LTM Ended December In Єm Network sales 2023 320.0 2024 334.2 % like-for-like change 3.8% 1.9% Var.% 4.4% (1.9)pp 2023 980.9 Gross Margin 223.1 231.7 3.8% 676.5 As a % of Network Sales 69.7% 69.3% (0.4)pp 69.0% Network Contribution 149.6 152.8 As a % of Network Sales Reported EBITDA As a % of Network Sales Recurring operating profit As a % of Network Sales Net income Free cash flow 46.8% 45.7% 2.1% (1.0)pp 390.8 39.8% 116.7 118.3 36.5% 35.4% 1.3% (1.1)pp 91.1 28.5% 91.3 27.3% 0.3% (1.1)pp 28.0% 163.7 16.7% As a % of Reported EBITDA 50.4 119.1 102.0% 48.7 (3.3)% 149.6 25.6% 126.5% 24.5 pp 184.5 67.2% Net financial debt for leverage calculation (855.8) Leverage (Net Financial Debt for leverage calculation/Adjusted EBITDA). n.c. (798.9) 2.76x 6.6% n.a. (798.9) 2.76x THOM Q1 2024 Results - Investor presentation March 15, 2024 274.4 42.7 Increase in Reported EBITDA The increase by €1.5m was mainly due to the increase in network sales across the board, resulting from the Group's strategy to develop the awareness of its brands, digitalize our distribution (e-commerce network sales increased by +9% on a LFL basis in Q1 2024) and develop services to our customers not offset by the impact of inflation on our cost base. Reported EBITDA rate remains at a high level of 35.4% in Q1 2024. The 1.1pp decrease in Reported EBITDA rate mainly derives from GM rate (- 0.4pp) and from higher energy costs (-0.4pp). GM Rate decreased from 69.7% to 69.3% due to the inflation of manufacturing and raw materials' costs. We have started to implement price increases by waves in the fiscal year 2024 with limited effects on the 3-month period ended December 31 as this repricing concern the new arrivals (which are labelled with the new prices). Free Cash Flow conversion rate of 126.5% in Q1 2024, higher by 24.5pp compared to 102% in Q1 2023 benefitted from a more positive change in working capital in Q1 2024 resulting from a sale of gold for 14m€ for hedging purposes and from the increase in suppliers' liability as the deliveries of goods were anticipated in Q1 2023 to secure the procurement of products for the Christmas season. We returned to a more normative seasonality pattern of purchases for Christmas vs. Q1 2023. In LTM Dec23, Free Cash Flow conversion rate reached 67.2%. Net Financial Debt totalled €798.9m as of December 31, 2023 (net financial debt for leverage calculation), i.e. a leverage of 2.76x based on Adjusted EBITDA, a decrease of 0.38x compared to September 30, 2023. p.14
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