Weak Demand Impacts Siltronic AG's H1 2024 Earnings, Q2 Sales Slightly Up

Siltronic AG announced its H1 2024 earnings, highlighting weak market demand that aligns with expectations. Sales for the first half-year decreased by 14.0% to EUR 694.8 million compared to H1 2023. However, Q2 sales rose by 2.3% from the previous quarter, reaching EUR 351.3 million.

Despite the challenging market, Siltronic maintained a solid EBITDA margin of 26.1% for H1 2024, with Q2's margin at 25.8%. CEO Dr. Michael Heckmeier noted that although overall demand was weak, the company experienced marginal sales improvement in Q2.

Profitability metrics showed a decline; net profit dropped from EUR 27.7 million in Q1 to EUR 22.4 million in Q2. The H1 2024 net profit was EUR 50.1 million, down from EUR 133.9 million in H1 2023. High investment levels, including significant capital expenditure on a new Singapore fab, impacted financial liquidity, leading to a net cash flow of EUR -252.8 million and an increase in net financial debt to EUR 639.2 million by June 30, 2024.

The company reaffirmed its 2024 guidance, anticipating a high single-digit percentage sales decline from the previous year, and an EBITDA margin within 23-25%.