The Board of Directors of Italian Exhibition Group S.p.A. (“IEG” or the “Group”) approved its Consolidated Half-Year Financial Report as of June 30, 2024.
Mr. Corrado Arturo Peraboni, CEO of the IEG Group, commented as follows: “We are particularly pleased with the results of the first half of the year, which show signs of stronger growth than expected, thanks to the actions taken in the execution of the 2023-2028 Strategic Plan.
The record results of the first part of the year are due not only to the growth of our core products in the organized events segment, such as VicenzaOro, Sigep, and RiminiWellness, but also to the development of our product portfolio both in Italy, with K.EY, and abroad with Sigep Asia in Singapore and DroneShow Robotics, MundoGeo Connect, Space BR, and eVTOL in Brazil. The related services segment also performed well in terms of revenue and margins.
The investment plan supporting the growth of the Strategic Plan is proceeding on schedule, with the aim of creating temporary spaces as high-quality as the existing ones, to accommodate our exhibitors at VicenzaOro September and Ecomondo in the second half of the year. In the second half of the year, we expect to see the growth trends confirmed for the main events, for which we are already recording bookings higher than expected, allowing us to raise the guidance on the economic and financial results forecast for 2024”
The Group closed the first half of 2024 with Revenues of 131.9 million Euros, an increase of 15.3 million Euros compared to the 116.6 million Euros recorded in the same period of the previous year. The Group achieved a turnover increase of 13.2% in the first half, due to the development of the organized events both in Italy and abroad.
Adjusted EBITDA amounted to 36.0 million Euros, an improvement of 8.2 million Euros compared to 30 June 2023 when the Group recorded a Gross Operating Margin of 27.8 million Euros, and stands at 27.3% of revenues, with an improvement of 3.4 percentage points, driven by the higher volumes in the organized events business line.
Adjusted EBIT amounted to 27.8 million Euros, an increase of 8.2 million Euros compared to the first half of 2023, and stands at 21.1% of revenues, up from 16.8% in the first half of 2023, thanks to the positive trend of the operating activities.
Group’s net profit equal to 20.1 million Euros, an increase of 9.5 million Euros compared to the same period of the previous year, when it amounted to 10.6 million Euros.
The Net Financial Position as of 30 June 2024 is 87.8 million Euros, an improvement of 7.1 million Euros compared to the first half of 2023 when it amounted to 94.8 million Euros, and a decrease of 15.8 million Euros compared to 31 December 2023, as a result of investments, M&A activities and dividends paid during the first half. The Monetary NFP stands at 43.5 million Euros, up from the 60.9 million Euros at 30 June 2023.
Income Taxes were 3.5 million Euros, the current tax rate is equal to 14.8% as a result of the complete absorption of the fiscal losses.
Group’s Period Result amounted to 20.1 million Euros, an improvement of 9.5 million Euros compared to the period closed at 30 June 2023.
Net Invested Capital was equal to 212.2 million Euros (178.6 million Euros as of 31 December 2023), marking an increase of 33.6 million Euros, mainly attributed to the trend of New Working Capital with a variation of 24.6 million Euros, the increase in Fixed Assets of 4.6 million Euros and the decrease in non-current provisions for risk of 4.4 million Euros as a result of the agreement reached with the minority shareholder of FB International Inc. for the transfer of its shares to IEG Group.
Fixed Assets (259.0 million Euros as of 31 December 2023) 4, reflecting an increase of 24.6 million Euros primarily due to the seasonality of the business, which leads to a higher absorption of advances recorded at the end of the previous year compared to the amount related to events taking place in the second half of the year.
The Group’s Net Financial Position as of 30 June 2024 is 87.8 million Euros, a decrease of 15.9 million Euros compared to 31 December 2023. Operating cash absorbed during the first half amounted to 0.9 million Euros. Investments for the period total 6.5 million Euros, mainly related to maintenance of the exhibition centers, the creation of new automated parking facilities, the start of the redevelopment of the Vicenza exhibition center, and the replacement of equipment for production companies, as well as investments in information systems and digitalization projects. Operating cash, net of expansion investments, is 3.8 million Euros, an increase of 2.6 million Euros compared to the first half of 2023.
