Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Mutares SE & Co KGaA (FRA:MUX, Financial) has expanded its global presence with new offices in Mumbai, India, and Chicago, USA, enhancing its geographical footprint.
- The company has successfully executed 11 acquisitions in H1 2024, including notable brands like fischer automotive, which supports its growth strategy.
- Mutares SE & Co KGaA is targeting a significant revenue growth, aiming for EUR7 billion in annualized turnover across its diversified segments.
- The company has demonstrated strong exit capabilities, with successful divestments such as Frigoscandia, contributing positively to its financials.
- Mutares SE & Co KGaA maintains a strong alignment of interests with shareholders, holding 36% of shares, and continues to offer attractive dividends.
Negative Points
- The company's EBITDA and adjusted EBITDA have not been as positive in Q2 2024 compared to Q1, reflecting challenges in integrating loss-making acquisitions.
- The automotive segment faces uncertainties due to strategic shifts in the industry, which may require additional investments to align capacities.
- Some portfolio companies are still in the realignment phase, contributing negatively to the adjusted EBITDA, impacting overall profitability.
- The Retail & Food segment is challenged by weak consumer confidence in core markets like France, necessitating cost-cutting measures.
- The company acknowledges that its strategy of consolidating large groups may require further investment, posing potential financial risks.
Q & A Highlights
Q: Do you expect any material deals before the fourth quarter, or should we anticipate waiting until then?
A: It's difficult to predict precisely, but my tendency is to say yes, we might see exits before the fourth quarter. We have ongoing exit processes with good demand, so we expect exits this year, potentially even in Q3. - Johannes Laumann, Chief Investment Officer
Q: With the automotive industry facing uncertainty, do you foresee needing to invest substantial cash into your subsidiaries to align capacities?
A: The uncertainty in the automotive market presents both challenges and opportunities. We see this as an advantage for both buying and selling. While consolidating and forming large groups like Amaneos and FerrAl requires investment, we believe this strategy will ultimately benefit our shareholders. - Johannes Laumann, Chief Investment Officer
Q: Can you elaborate on the strategic importance of your recent acquisitions, particularly in the automotive sector?
A: Our acquisitions, such as those in the automotive sector, are part of our strategy to expand geographically and strengthen our portfolio. These acquisitions help us tap into new markets and enhance our operational capabilities, particularly in the US and China. - Mark Friedrich, Chief Financial Officer
Q: How is Mutares performing financially in H1 2024, and what are your expectations for the rest of the year?
A: We saw a revenue growth of over 15% in H1 2024, reaching EUR2.6 billion. We maintain our full-year guidance of EUR5.7 billion to EUR6.3 billion. While EBITDA remained positive, it was not as strong as in Q1 due to our business model of acquiring loss-making entities. We expect improvements in the second half of 2024. - Mark Friedrich, Chief Financial Officer
Q: What are the key growth areas for Mutares moving forward?
A: We are focused on growth in turnover, profitability, geographical footprint, and workforce. Our target is to reach EUR10 billion in turnover by 2028 with at least 2% profitability. We aim to expand our presence in Asia and the US, leveraging our successful track record and industry knowledge. - Johannes Laumann, Chief Investment Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
