AeTECH Publishes Disappointing Activity Indicators for Q1 and Q2 2024
AeTECH has just released its activity indicators for both the first and second quarters of 2024, with the latter being of greater importance. Unfortunately, the figures are quite disappointing.
Operational Performance
For the first six months of the year, operational products have seen a 9% decline, reaching 2,445 Mtnd. The Solutions business segment has been particularly affected, with a revenue of only 0,347 Mtnd, due to delayed invoicing of ongoing projects. New delivery deadlines have been imposed by contractors, and a delay in the realization of new orders has been observed.
Distribution Activity
The distribution activity has generated 2,098 Mtnd, accounting for 85.8% of total revenue, but still experiencing a 26% decline compared to June 2023.
Second Quarter Performance
The second quarter has been particularly challenging, whereas the first quarter showed a 7% year-over-year increase in operational products, reaching 1,352 Mtnd.
Expenses and EBITDA
Operating expenses, excluding depreciation and provisions, have decreased by 15%, reaching 2,571 Mtnd. However, the EBITDA remains negative, at -0,125 Mtnd. Financial expenses have decreased by 64%, reaching 0,117 Mtnd.
Outlook
AeTECH appears to be heading towards a loss in its first-half 2024 accounts. The 2023 accounts have not yet been published, with the last published result being a loss of 0,841 Mtnd for the first half of 2023. The company urgently needs recapitalization to continue its operations and even to comply with legal requirements. Delays in public construction projects have dealt a severe blow to the integrator's activity, which is trying to compensate with distribution. The market continues to penalize AeTECH, which has underperformed by -18,18% since the beginning of the year, with a market capitalization of only 0,600 Mtnd.
