In the first half of 2024, the Econocom Group reported sales of €1,335 million, representing an increase of 3.0% compared to the same period in 2023 (compared to 2.6% in the first quarter). This growth was driven by all areas of the group’s activity, with organic growth of 2.9%, with no significant changes in the scope of consolidation.
The performance of continuing activities during this period was as follows:
- Technology Management & Financing (TMF): Econocom achieved sales of €506 million, growing by 6.1%, of which 5.9% was organic growth. Taking advantage of its flexible and tailored financing offers, the group expanded its sales in the target regions. In line with its Strategic Plan, Econocom continued to invest in recruiting sales staff and renewing operational tools during the first half of the year. The operating margin was €14.6 million, €2.5 million less than in the first half of 2023.
- Products & Solutions (P&S): Sales totaled €591 million, an increase of 1.1%. After a first quarter with a 2.5% drop in revenue, activity picked up in the second quarter, thanks to a more dynamic European IT distribution market. The operating margin stood at €14.4 million, a slight decrease of €1.1 million compared to the first half of 2023.
- Services: At the end of June 2024, this area reported revenues of €239 million, a growth of 1.2% on an organic basis. The operating margin was €9.3 million, similar to that of the first half of 2023.
In total, Econocom’s operating margin was 38.3 million euros.
Other operating income and expenses amounted to -4.1 million euros, a decrease of 0.3 million compared to the same period in 2023.
Considering a net financial expense of €5.9 million, a corporate tax expense of €9.3 million and a profit from discontinued operations of €5.7 million, consolidated net profit for the first half of 2024 was €23.1 million, compared to €24.7 million in the same period of the previous year.
Half-year results in line with the Strategic Plan: continued sales growth and strong reduction in net financial debt
Significant Reduction in Net Financial Debt
In line with the One Econocom 2024-2028 Strategic Plan, the Group has launched a programme of divestments of non-strategic assets to self-finance its external growth policy. As part of this programme, the Group completed the sale of its subsidiary Les Abeilles at the beginning of June, raising more than half of the €180 million envisaged in the One Econocom Plan.
In addition, over the past 12 months, the Group generated cash flow of €88 million, thanks to the efforts of all its entities to reduce working capital needs.
These factors contributed to the reduction of Net Financial Debt to €180 million as of June 30, 2024, compared to €321 million in the previous year. This is the lowest level of debt recorded in the last 10 years at this date.
New Governance
Econocom’s Board of Directors unanimously approved the separation of the roles of Executive Chairman and CEO, appointing Angel Benguigui as CEO of the Group. Jean-Louis Bouchard, Founder of Econocom, will assume the role of Executive Chairman. Benguigui will benefit from Bouchard’s support and advice, based on a relationship of trust established over the years. A new Executive Committee will be announced soon, which will reinforce the experience and complementarity of the General Management team.
Outlook for 2024
In light of these positive trends at the end of June, Econocom confirms its sales growth target for 2024, placing it between 3% and 5%.
This document is a free translation into Spanish of the original press release in French and English on the results obtained in the first half of 2024.
