Yahoo Finance

• Revenue: EUR312.9 million, a decrease of 9.5% compared to the first half of 2023.

• EBIT: EUR34.1 million, down 12% from 2023, with an EBIT margin close to 11%.

• Net Income: EUR27.4 million, surpassing 2023 figures.

• Gross Margin: Improved to 41.2% from 38% in the first half of 2023.

• EBITDA: EUR41.4 million, down 9.3% from EUR45.7 million in the first half of 2023.

• Net Financial Position: Increased to EUR68.6 million from EUR54.6 million at the end of 2023.

• Medical Sector Revenue: Declined by 1.7%, with a stronger performance in Q2 2024.

• Industrial Sector Revenue: Decreased by 19.9%, with a significant decline in the cutting division.

• Operating Expenses: Increased, with sales and marketing expenses impacting sales from 8.9% to 10%.

• Staff Costs: Increased by EUR0.8 million, with an impact on sales from 16% to 17.9%.

• Number of Employees: Decreased to 2,030 from 2,082 as of December 2023.

• Cash Flow: Net financial position increased by EUR40 million during the period.

• Warning! GuruFocus has detected 6 Warning Signs with WAR:ATT.

Release Date: September 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• El.En. SpA (FRA:EE5) achieved a strong EBIT margin of close to 11% despite a decline in revenues.

• The medical sector showed good performance in Q2, with results in line with the same period in 2023.

• The company reported an excellent net income of EUR27.4 million, surpassing 2023 on this metric.

• Innovative processes and product offerings in areas like urology and aesthetic medicine registered excellent performances.

• The company maintained a strong position in international markets, recognized as a leader in several application segments.

Negative Points

• Group revenues declined by approximately 9% compared to the corresponding period of 2023.

• The industrial sector, especially in cutting, faced significant challenges, causing a decline in revenue and profit.

• The Chinese market continues to suffer from a structural crisis, impacting domestic demand and pricing.

• The US market for specific medical applications did not maintain previous years' revenue levels.

• The IPO process for the laser cutting division in China was interrupted due to inadequate financial results and market weakness.

Q & A Highlights

Q: Industrial revenues in Europe are up 40% in Q2. Are margins higher abroad compared to domestic sales? Also, any updates on the industry 5.0 guidelines and their impact? A: Sales in Europe, excluding China and Italy, are increasing and generally have higher margins. This supports our guidance for improved margins despite a decline in sales. The industry 5.0 guidelines have positively impacted order bookings in Italy, and we are optimistic about future growth.