H1 2024 interim results: strong growth, on-track for Q4 phased rollout of integrated platform

H1 financial highlights

Continued strong growth from our business-critical products and services

• Total net revenue¹ +18.4% to €141.0m (H1 2023: €119.1m).
• Payment solutions revenue¹ +10.2% to €79.8m, supported by growth from toll revenues and 11.8% growth in active payment solutions trucks . 
• Mobility solutions revenue¹ +31.3% to €61.3m, as a result of the annualisation of Inelo and continued growth across all our products. 
• Adjusted EBITDA¹ +18.2% to €59.4m (H1 2023: €50.2m), with a margin¹ of 42.1% (H1 2023: 42.2%).
• Adjusted profit before tax¹ €21.6m (H1 2023: €25.3m). Statutory profit before tax of €4.2m (H1 2023: €8.5m), a result of higher amortisation from acquired intangibles and interest costs relating to increased leverage, as well as higher depreciation as a result of our transformational capital expenditure programme, which is now complete.
• Capital expenditure spend of €20.5m (H1 2023: €24.7m), including the final €3.0m from our transformational programme.
• Net debt¹ position of €302.4m (FY 2023: €316.8m); a marked improvement with Net leverage² at 2.6x. Renegotiated credit facilities; extended maturity to 2029 reducing annual amortisation payments and extended revolving facility.   

Early adopters already onboarded; on-track for phased rollout of industry-first integrated platform in Q4 2024

• New platform unifies all Eurowag brands and services into a single data ecosystem, providing a one-stop-shop to deliver increased growth and efficiencies for customers.
• Early adopters already onboarded; phased migration of existing customers onto the Eurowag Office application for live-user testing. The platform will be ready for new customers in Q4 2024.

Outlook

• While the Board is mindful of macroeconomic challenges across the industry, Eurowag is well positioned and trading in-line with the Board’s expectations.
• Furthermore, the Board remains confident in the value creation from the new integrated platform and therefore our medium-term guidance remains unchanged.

Martin Vohánka, Founder and CEO, commented:

"We continue to deliver strong double-digit growth, despite the economic headwinds impacting the Commercial Road Transport (“CRT”) industry across Europe. Our resolute focus on providing mission-critical products to our customers has allowed us to create a highly resilient business model, giving us the capacity to enhance our services, scale and innovate.

I am pleased with our strong performance and progress in the first half of 2024, having successfully integrated certain functions of our recently acquired businesses – bringing together new colleagues and teams – and laid the groundwork for the phased rollout of our industry’s first integrated digital platform in Q4 this year.

The new digital one-stop-shop will be transformational. For the first time, the industry will have access to a single data-driven ecosystem, solving the complexity and fragmentation challenge that has held the sector back for far too long. For us, the new platform will deepen customer relationships and unlock further opportunities, and this gives me real confidence in our near and medium term guidance.” 
 

H1 operational highlights

^Notes:

<sup>1. Please refer to the section Alternative Performance Measures for a definition and see Note 6 of the condensed interim financial statements. 
2. Net debt includes lease liabilities and derivative liabilities.      
3. An active customer or truck is defined as using the Group’s payment solutions products at least once in a given month.
4. Number of payment solutions transactions represents the number of payment solutions transactions (fuel and toll transactions) processed by the Group for customers in that period.</sup>

For more information, please see the full announcement here