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Finance
05/09/2024
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H1 2024 results

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  • Food consumption remains sluggish in Europe, with high volatility in activities from one month to the next. 
  • Ongoing integration of recent acquisitions. 

At its meeting on 5 September, the Board of Directors of the STEF Group, the leading provider of transport and logistics services for temperature-controlled food products in Europe, approved the financial statements for the first half of 2024. 

The first half of the year has been a time of consolidating our activities and continuing our growth across Europe through a series of acquisitions. Over this period, the anticipated rebound in food consumption was slow to materialise, which led to moderate revenue growth and a slight dip in operating profit. Our net profit reflects the impact of high interest rates during the period. In this context, we have stayed committed to our investment strategy, as we firmly believe it is the foundation for future success.

Stanislas Lemor
Chairman and CEO, STEF Group

H1 2024 Results

In €m H1 2023 H1 2024 Change
Revenue 2,179.1 2,325.2 6.7%
Operating profit (EBIT) 113.2 106.6 (5.8%)
EBIT in % of revenue 5.2% 4.6% (0.6) bps
Income from continuing operations 79.2 68.1 (14.1%)
Income from discontinued operations 15.6 -
Net income (Group share) 94.8 68.0 (28.3%)
Net investment programme (1) (53.8) (218.0)
Free cash flow (2) 115.1 (94.5) (209.7)
Gearing (net debt / equity) 0.92 1.09 0.17

(1) Corresponds to the net cash flows from investing activities as presented in the cash flow statement

(2) Corresponds to the sum of net cash flows generated by operating activities and net cash flows from investing activities as presented in the cash flow statement

Operating income

Operating income (in €m) H1 2023 H1 2024
STEF France 63.4 53.4
STEF International 45.9 49.6
Other 3.8 3.7
Operating profit (EBIT) 113.2 106.6

During the period, the Group's net debt rose from €1 billion to €1.3 billion, reflecting its investment strategy—including acquisitions, property, and vehicles—to strengthen its market leadership. These investments, along with an unusually high comparison base following the sale of La Méridionale in 2023, resulted in a significant shift in the Group’s free cash flow. 

Half-yearly information by geographic area and business

STEF France 

  • The profitability of the Chilled transport segment has declined amidst stagnant food consumption. 
  • The Frozen food business line has seen a drop in volumes and a reduced warehouse occupancy rate, affecting its profitability. 
  • While the Retail segment is experiencing strong growth, driven by positive effects from new business developments, it must navigate the increasing concentration in the retail sector. 
  • The TSA (temperature-controlled and ambient food) and Packaging activities are performing well, allowing for continued growth. 
  • The Foodservice segment continues to progress despite a slowdown in the restaurant market positive trend. 

STEF International

  • Italy is enjoying positive commercial momentum and effectively managing its operational resources. 
  • Spain is seeing benefits from the expansion of its Foodservice activities. 
  • Portugal’s robust commercial activity and its focus on specialisation over the past two years are strengthening its market positions. 
  • The UK is experiencing revenue growth, supported by favourable exchange rates, and is maintaining profitability despite a slowdown in international operations.

Outlook

Despite ongoing economic uncertainty, STEF remains confident in the robustness of its value creation model. The Group plans to continue with a targeted investment approach, paying close attention to investments in the energy transition. Furthermore, STEF is advancing its overall strategy for enhancing customer relations, including a transformation of its customer service. 

The half-year financial statements have been subjected to a limited review by the statutory auditors and will be published on the Group’s website.

Next publication
Q3 2024 revenue: 17 October 2024, after markets close