2024-07-26 09:58:09 ET
HOCHTIEF Aktiengesellschaft (HOCFF)
Q2 2024 Earnings Conference Call
July 24, 2024 10:30 AM ET
Company Participants
Mike Pinkney - Head of Corporate Strategy
Juan Santamaria - Chief Executive Officer
Conference Call Participants
Graham Hunt - Jefferies LLC
Victor Acitores - Bernstein
Dario Maglione - BNP Paribas Exane
Marcin Wojtal - Bank of America Merrill Lynch
Marco Limite - Barclays
Augustin Cendre - Stifel
Luis Prieto - Kepler Cheuvreux
Nicolas Mora - Morgan Stanley
Presentation
Mike Pinkney
Good afternoon, everyone, and thank you for joining this HOCHTIEF First Half 2024 Results Call. I'm Mike Pinkney, Head of Corporate Strategy, and I'm here with our CEO, Juan Santamaria, our CFO, Peter Sassenfeld; and our Head of Capital Markets, Tobias Loskamp; and other colleagues from the senior management team here at HOCHTIEF.
We're looking forward to taking your questions, of course, but to kick off, our CEO is going to run us through the details of this strong set of numbers as well as the important strategic acquisition that we just announced, Juan, all yours.
Juan Santamaria
Thank you, Mike and team. Good afternoon to everyone and thanks for joining us. HOCHTIEF has delivered a solid performance during the first half of 2024, with higher sales and profits, supported by firm cash flow generation. This has been accompanied by a continued expansion of its order book driven by a further substantial rise in new orders. In addition, the Group has taken important steps forward in delivering on its strategic development with two significant acquisitions.
Today, we have announced the acquisition of a rapidly growing advanced-tech engineering company which will accelerate Turner’s strategy of expanding its presence in Europe. I will elaborate on this further in a moment.
And as I previously announced, in April, HOCHTIEF increased its ownership of natural resources company Thiess. This investment strengthens the Group’s business profile and underlines the strategic importance of the global energy transition for the Group.
So let's take a look at the key figures for January-June period. Group sales of €14.6 billion show a 7% increase year-on-year. HOCHTIEF’s operational net profit rose by 11% to €301 million or 18% on a comparable basis adjusting for the global consolidation of Thiess for two months as well as the divestment of Ventia in 2023. The nominal net profit of €436 million includes a one-off non-cash gain at CIMIC of €146 million net of provisions. The cash flow performance for the period includes a characteristic seasonal movement seen during the first quarter of the year....
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HOCHTIEF Aktiengesellschaft (HOCFF) Q2 2024 Earnings Call Transcript