from ABEO (EPA:ABEO)
ABEO: Solid first half 2024/25 earnings and solid second half visibility
Revenue up 0.4%- Recurring EBITDA €14m, EBITDA margin 11.3%
- Net income, Group share €2.6m (up 3.7%)
- Growth upswing expected in H2 2024/25
- Medium-term financing secured and debt maturity extended
ABEO, a leading global supplier of sports and leisure equipment, today announces its consolidated earnings for the first half of 2024/25.
- Consolidated first half 2024/25 earnings (1 April to 30 September 2024) reviewed – ABEO's Board of Directors met on 3 December 2024 to approve the first half 2024/25 financial statements. The half-year financial report will be made available to the public and filed with the French Financial Markets Authority (AMF) in the next few days. The report will also be published on the Company website.
| € million | 30.09.2023[1] 6 months | 30.09.2024 6 months | Change 2024 vs 2023 |
| Revenue | 123.4 | 123.9 | +0.4% |
| Recurring EBITDA[2] | 14.0 | 14.0 | +0.2% |
| % of revenue | 11.3% | 11.3% | - |
| Recurring operating income | 8.1 | 8.0 | -1.2% |
| Operating income | 6.9 | 7.2 | +5.7% |
| Net income | 2.3 | 3.1 | +32.6% |
| Net income – Group share | 2.5 | 2.6 | +3.7% |
ABEO Group CEO Olivier Estèves commented on the publication of first half 2024/25 earnings: “Naturally, the first half was marked by our contribution to the world's greatest sporting event: the Paris 2024 Olympic and Paralympic Games. This unique collaboration was a resounding success that once again highlighted our expertise and the quality of our products and services, which fully lived up to the Olympic athletes' expectations and objectives.
In terms of economic performance, despite the ongoing uncertain global situation, we posted solid first half earnings, an improvement on last year's performance, while keeping financial balances well under control. We are entering the second half with confidence, as we plan to step up sales thanks to our strategic positioning in sustainable growth markets and our robust order intake.”
First half 2024/25 business review
ABEO posted consolidated first half 2024/25 revenue of €123.9m, up 0.4% (up 0.2% like-for-like). After a slight decline at the start of the financial year, business momentum picked up in the 2nd quarter (up 2.9%), driven by growth in the Gymnastics business and Benelux operations, as well as the recovery of Fun Spot US sales in the Sportainment & Climbing division.
Solid EBITDA margin at 11.3%
The Group showed great resilience amid a persistently complex economic environment. First half 2024/25 recurring EBITDA amounted to €14.0m[3], stable compared to the same period last year and representing 11.3% of revenue. This performance is particularly satisfying given that it includes almost all the operating expenses incurred in connection with the Paris 2024 Olympic and Paralympic Games, without any corresponding income being recognised. Restated for these expenses, the first half recurring EBITDA margin improves by 0.7 percentage points to 12%.
The EBITDA margin was impacted by:
- a 2.1 percentage point rise in the gross margin,
- greater use of subcontracting (up €1.6m) to improve operational flexibility,
- increasing staff costs amid a challenging recruitment market environment (29.6% of revenue compared to 28.8% in H1 2023/24).
The Sports division reported recurring EBITDA of €8.8m[4], or 12.9% of revenue, up 0.4 percentage points from H1 2023/24. This performance is related to the increase in the gross margin to 62.6% (up 3.3 percentage points), offsetting the limited increase in the cost structure against a backdrop of growth (first half division revenue up 7%).
The Sportainment & Climbing division posted recurring EBITDA of €0.2m[5], representing 1.1% of division revenue, down 1.6 percentage points from H1 2023/24. The decrease was due to the decline in the contribution from the recreational and sports climbing wall business, which was not fully offset by the recovery in Fun Spot's US business, where recurring EBITDA climbed back close to breakeven.
The Changing Rooms division posted recurring EBITDA of €4.9m[6], giving a constantly high EBITDA margin of 14.4% despite dropping back 1.2 percentage points versus H1 2023/24. The 0.5 percentage point improvement in the gross margin softened the impact of increased outsourcing and the slight rise in staff costs.
After depreciation of fixed assets (€-6.0m, including €-2.9m related to IFRS 16), recurring operating income amounted to €8.0m in H1 2024/25 (versus €8.1m the previous year), representing 6.4% of revenue (down 0.2 percentage points from H1 2023/24).
Non-recurring operating income and expenses amounted to a €0.8m net expense (compared to a €1.2m net expense in H1 2023/24). Accordingly, first half operating income amounted to €7.2m, up 5.7%.
Finally, after a fall in the cost of debt to €1.8m, a €1.1m foreign exchange loss and a €1.7m tax charge, net income Group share for the period amounted to €2.6m, up 3.7%.
Financial structure under control and improvement in change in working capital
First half cash flow from operations (after tax) improved sharply to a €0.3m inflow (compared to a €8.1m outflow in H1 2023/24). This improvement was driven by cash flow from operations before change in working capital and tax, which amounted to €13.2m, and a lower seasonal increase in working capital compared to H1 2023/24 (€9.7m outflow versus €19.5m outflow last year) due to the measures taken in this area.
Cash flow from investing activities amounted to a €3.4m outflow, down sharply versus H1 2023/24 cash flow which included the acquisition of a stake in VOGO and the completion of the BigAirBag acquisition.
As a result, Group first half free cash flow amounted to a €3.1m outflow, compared to a €18.2m outflow the previous year.
Cash and cash equivalents amounted to €12.2m at 30 September 2024. Net debt stood at €105.9m (€73.1m excluding IFRS 16) and Group shareholders' equity amounted to €109.7m.
Strengthened financial resources
ABEO signed a new €130m[7] loan agreement with its banking pool[8] to refinance existing debt and support the development strategy. The unsecured loan agreement is subject to identical covenants, calculated excluding IFRS 16 (leverage ratio[9] and debt ratio[10]), and comprises financing lines repayable in instalments or at maturity in 2031.
Overall underwriting intentions largely satisfied the Group's wishes, reflecting banking partners' confidence in ABEO's future and the Group's ability to generate sustainable cash flow.
Trends and outlook
After dynamic first half order intake[11] of €134.1m, up 9.9% (up 9.7% like-for-like), ABEO is well positioned to step up its growth rate in the second half.
The Group plans to bolster this momentum while continuing to consolidate its operating performance.
Active involvement in international competitions
Our Brick brand was selected by the International Gymnastics Federation as the official supplier for the 2024 World Parkour[12] Championships held in Japan from 15 to 17 November 2024. Brick offers traceurs all over the world facilities optimised for performance and safety and specially designed to meet the requirements of the discipline, thereby helping to boost the development of Parkour worldwide.
The Saudi Climbing and Hiking Federation (SHCF) celebrated the first West Asia Boulder Cup in September 2024 at its new venue in Al Bahah, a mountainous region near Jeddah. This event was equipped by a competition wall, the Titan wall and a warm-up wall, all designed and manufactured by our EP brand. Currently installed outside at a temporary location, the walls will be transferred to a building that will host the federation's headquarters and training area.
Next releases
4 February 2025 – Q3 2024/25 revenue (after close of trading)
13 May 2025 – 2024/25 revenue (after close of trading)
Find more at www.abeo-bourse.com
| ABOUT ABEO |
| ABEO is a major player in the sports and leisure market. The Group posted revenue of € 248.4 million for the year ended 31 March 2024, 73% of which was generated outside France, and has 1,446 employees. ABEO is a designer, manufacturer and distributor of sports and leisure equipment. It also provides assistance in implementing projects for professional customers in the following sectors: specialised sports halls and clubs, leisure centres, education, local authorities, construction professionals, etc. ABEO has a unique global offering, and operates in a wide variety of market segments, including gymnastics apparatus and landing mats, team sports equipment, physical education, climbing walls, leisure equipment and changing room fittings. The Group has a portfolio of strong brands which partner sports federations and are featured at major sporting events, including the Olympic Games. ABEO (ISIN code: FR0013185857, ABEO) is listed on Euronext Paris – Compartment C. |
Contacts
For any questions relating to this press release or the ABEO Group, please contact ACTUS finance & communication
Investor relations – Corinne Puissant investor@beo.fr Tel: +33 (0)1 53 67 36 77
Press relations – Serena Boni presse@beo.fr Tel: +33 (0)4 72 18 04 92
APPENDICES
| Condensed consolidated income statement € million | 30.09.2023 reported | 30.09.2023 IFRS 5 restated |
| Revenue o/w Sports | 123.5 64.2 | 123.4 64.1 |
| Recurring EBITDA | 13.7 | 14.0 |
| % revenue | 11.1% | 11.3% |
| Recurring operating income | 7.8 | 8.1 |
| Operating income | 6.5 | 6.9 |
| Income from continuing operations | 2.3 | 2.6 |
| Income from discontinued operations | - | -0.3 |
| Net income | 2.3 | 2.3 |
| Net income – Group share | 2.5 | 2.5 |
| Condensed cash flow statement € million | H1 2023/24 reported | H1 2023/24 IFRS 5 restated |
| Cash flow from operations before change in working capital and tax | 13.3 | 13.6 |
| Change in working capital | (19.3) | (19.5) |
| Tax paid | (2.1) | (2.1) |
| Cash-flow from discontinued operations | - | (0.1) |
| Cash flow from operations after tax | (8.1) | (8.1) |
| Capex | (4.3) | (4.2) |
| M&A | (5.9) | (5.9) |
| Cash-flow from discontinued operations | - | (0.1) |
| Cash- flow from investing activities | (10.1) | (10.1) |
| Free cash flow | (18.2) | (18.2) |
| Dividends | (2.5) | (2.5) |
| New borrowings | 7.0 | 7.0 |
| Repayment of borrowings | (7.6) | (7.6) |
| Net interest paid | (1.4) | (1.4) |
| Cash flow from financing activities | (4.5) | (4.5) |
| Currency translation difference | - | - |
| Change in cash and cash equivalents | (22.8) | (22.8) |
[1] The 2022/23 financial statements presented and commented on have been restated for the impact of the disposal of ABEO's stake in Vogoscope, in accordance with IFRS 5 (see Appendix, page 5 of the press release)
[2] Recurring operating income + depreciation of fixed assets
[3] Excluding IFRS 16, H1 2024/25 recurring EBITDA was €10.7m, or 8.6% of revenue.
[4] Excluding IFRS 16, H1 2024/25 recurring EBITDA was €6.8m, or 10.0% of revenue.
[5] Excluding IFRS 16, H1 2024/25 recurring EBITDA was €(0.5)m.
[6] Excluding IFRS 16, H1 2024/25 recurring EBITDA was €4.4m, or 12.9% of revenue.
[7] €50m for refinancing including €29.4m for repayment of the previous syndicated loan and €20.6m for the Euro-PP maturing in April 2025, €50m for financing capital expenditure and acquisitions, €30m for general requirements and short-term financing of which €20m had been drawn down by 30 September 2024
[8] On the basis of 7 banks - Crédit Agricole Franche-Comté, Crédit Agricole Champagne-Bourgogne, Crédit Agricole CIB, CIC Lyonnaise de Banque, Société Générale, BNP Paribas et Caisse d'Epargne Bourgogne Franche-Comté
[9] Net debt/recurring EBITDA
[10] Net debt/shareholders' equity
[11] Non-financial data – to measure the sales momentum of its business activities, the Group uses the quantified amount of its order intake over a given period, inter alia. The sales momentum indicator represents the aggregate value of all orders booked over the relevant period, as compared to the same period for the previous financial year.
[12] a full-fledged sporting discipline in which participants defy the laws of gravity to move through the urban environment.