GESCO SE Releases Preliminary H1/2024 Figures and Revises FY 2024 Forecast

GESCO SE reported its preliminary, unaudited figures for the first half of 2024. Group sales reached approximately EUR 252.8 million, down from EUR 292.1 million in H1/2023. Consolidated EBIT was EUR 6.6 million, a sharp decline from EUR 22.8 million in the previous year. The consolidated net profit after minority interests also dropped to EUR 2.0 million compared to EUR 14.3 million in H1/2023.

The decline is attributed to weak economic conditions in Germany and Europe, subdued demand, and project delays. Additionally, low price levels at Doerrenberg impacted gross profit and earnings negatively. Despite these challenges, the company anticipates catch-up effects as the economy improves.

The original 2024 forecast projected a recovery in the latter half of the year. However, due to a weaker second quarter, GESCO revised its forecast. The new expectations for consolidated sales are EUR 520 - 540 million, down from the earlier EUR 570 - 590 million, and consolidated net income now ranges from EUR 8 - 12 million, reduced from EUR 26 - 28 million.

Measures to safeguard earnings have been implemented across all subsidiaries, and the company expects an increase in earnings in the second half of the year. The half-year report will be published on August 13, 2024, with an explanatory conference call scheduled for the same day.