Belysse Group, manufacturer of durable textile floor coverings for both commercial and residential applications, has presented its results for the first half of 2024, with consolidated group sales reaching €144.7 million. This represents a decrease of 7.0% compared to the same period last year. Sales fell organically by 7.0%, with a minimal currency effect of 0.0%. In the US, sales contracted by 6.2%, while Europe saw a 7.8% drop in sales. In Q2 2024, consolidated group revenue fell to €74.5 million, down 5.7% from Q2 2023.
Higher profit
Despite the decline in revenue, Belysse recorded a significant improvement in adjusted EBITDA, which reached €21.5 million, up 75.1% on Q1 2023. Adjusted EBITDA for the United States reached €14.4 million, while Europe accounted for €7.1 million. In the second quarter, adjusted EBITDA increased mainly due to improved unit margins and savings on fixed costs, which offset the negative impact of lower volumes.
Net debt at the end of the first half of 2024 was €139.2 million, including €25.3 million of IFRS 16 lease obligations. This is €6.1 million lower than net debt at the end of 2023. The debt ratio, excluding the IFRS 16 impact but including sale-and-leaseback, fell to 3.2x, an improvement from 4.5x at the end of 2023. Total available liquidity was €41 million at the end of the first half of 2024.
Lower market demand
Results for the first half of 2024 reflected continued lower market demand in the European residential division and weaker demand for projects in the United States in the first quarter. Despite these market conditions, adjusted EBITDA improved significantly, mainly due to higher unit margins and fixed cost savings. In the United States, volumes improved in the second quarter compared to the first quarter, driven by higher sales in educational institutions, commercial buildings and residential segments.
In Europe, volumes were lower than in the first half of 2023, reflecting continued weakness in the residential market and a strategic shift to more profitable products. Volumes in the project-driven commercial division remained similar to last year. Adjusted EBITDA and margin improved significantly due to lower raw material costs, a higher-margin product portfolio and cost savings.
Belysse Group, which operates for 90% in North America and Europe under premium brands such as Bentley, modulyss, arc edition and ITC, is headquartered in Waregem, Belgium. With around 1,100 employees and three production sites in Belgium (Tielt and Zele) and the United States (Los Angeles), Belysse achieved sales of €301 million in 2023 and is listed on Euronext (Euronext: BELYS).
More information:
Belysse Group
www.belysse.com
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