EU and US could reach trade deal this weekend - Reuters
Investing.com -- Shares of Quadient (EPA:QDT) fell by 1% today following the company’s FY24 earnings release.
Despite reporting sales of €1,093 million, a 3.4% increase from the previous year and in line with consensus estimates, the stock experienced a slight downturn. The company’s organic sales growth was modest at 0.8%, with digital revenues rising 7.7% on a like-for-like basis to €267 million.
The growth in digital revenues was attributed to an acceleration in cross-selling to mail clients and a stronger performance in the final quarter, with new bookings looking promising for 2025.
Quadient’s locker revenues grew by 4.3% like-for-like at €94 million, bolstered by the expansion of the European network and increased usage in the U.S., where the installed base grew to approximately 26,000 units from 20,000 in 2023.
Meanwhile, the mail division remained nearly flat with a 0.4% increase, benefiting from the Frama acquisition. However, it faced a 2.5% decline in organic terms, reflecting the challenges of an underlying declining market.
The company achieved a sharp improvement in profitability for its digital division, with the EBITDA margin jumping from 11.8% to 17.5%, surpassing consensus expectations. Digital now accounts for 19% of the group’s EBITDA, up from 12% in the previous year.
The lockers division reached an EBITDA breakeven point, a significant milestone, with management maintaining confidence in achieving a 10% margin goal by 2026.
Despite these positive developments, the current EBIT remained stable at €146 million, matching consensus estimates, but the margin slightly decreased to 13.4% from 13.8% in 2023. The mail division’s EBITDA declined by 8.0% to €200 million, although it was 1.4% above consensus and remains highly profitable with a margin of 27.4%.
Looking ahead, Quadient expects to see accelerated organic revenue growth and current EBIT organic growth this year compared to 2024. The company also confirmed its medium-term guidance, targeting a minimum of 1.5% organic revenue CAGR and a minimum of 3% organic current EBIT CAGR from 2023 to 2026.
In terms of shareholder returns, Quadient proposed a dividend of €0.70 per share, an 8% increase from the previous year and higher than the consensus estimate of €0.67. This increase reflects a payout ratio of 36.1%.
Additionally, the company has repurchased €10 million worth of shares as part of a planned €30 million buyback, with the remaining €20 million expected to be acquired over the next 18 months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.