APPLUS SERVICES S.A.

Latest Results (20.08.2024):

Revenue Growth

For the first half of 2024, Applus Services, S.A. reported revenue of €1,094 million, marking a 9.3% increase compared to the same period in the previous year. This growth was driven by an 8.8% rise in organic revenue at constant exchange rates and a 1.9% contribution from acquisitions made in the last 12 months, despite a 1.4% negative impact from currency translation.

Operating Profit

Applus Services, S.A. achieved an adjusted operating profit of €125 million for the first half of 2024, which represents a 13.2% increase from the €110.6 million reported in the first half of 2023. The operating profit margin improved to 11.4%, up from 11.0% in the same period last year, driven by strong performance in three of the four divisions.

Cash Flow

The company generated a free cash flow of €65 million in the first half of 2024, reflecting a 10% increase compared to the same period in the previous year. This solid cash flow generation was attributed to the adjusted operating profit increase and a similar level of working capital outflow as the comparative period.

Net Debt and EBITDA

Applus Services, S.A. reported a net debt to EBITDA ratio of 2.4x for the first half of 2024. This ratio indicates the company's leverage and its ability to pay off its incurred debt with its earnings before interest, taxes, depreciation, and amortization.

Outlook

For the full year of 2024, Applus Services, S.A. maintains its outlook of mid to high single-digit organic revenue growth at constant exchange rates. The company also expects its adjusted operating profit margin to increase to around 11.5%, with a continued focus on improving the quality of its portfolio mix.