WENDEL: Q1 2024 Trading update
Q1 2024 NAV up +11%
Dynamic implementation of new strategic
directions
Net asset value as of March 31, 2024:
€7,912 million or €178.1 per share, up +11.2% since December
31, 2023
Q1 2024 consolidated net sales:
€1,848 million, up +11.7% overall and up +6.9%
organically
- Strong organic
growth of CPI (+9.7%) and Bureau Veritas (+8.0%)
- Strong total growth
of Stahl (+9.8%), with a return to organic growth
- Scalian total
growth of +1.3%, impacted by the slowdown in growth observed in the
engineering/IT services market, amplified by an unfavorable
seasonality effect
- ACAMS first quarter
down -3.1%, tied to timing effects expected to be offset over the
year
Implementation of new strategic
directions
- Sale of 9% of Bureau Veritas’ share
capital, with favorable conditions, generating approximately 1.1
billion euros of gross proceeds
- This partial
monetization, in line with Wendel’ strategy of active portfolio
management, was carried out at a price of €27.127 per share, or a
discount of only 3%, close to its value in the March 31, 2024
NAV
- Wendel remains
Bureau Veritas’ largest shareholder and controlling shareholder and
reiterates its full confidence in Bureau Veritas’ strategy
Strong financial structure
- Total liquidity of
€3.2bn as of March 31, 2024, including €2.3bn of cash and
€875 million available under the committed credit facility
(fully undrawn)
- Pro forma for the
sale of the 9% stake in Bureau Veritas and the dividend paid by CPI
in April 2024, cash available is €3.5 billion
- LTV ratio of 0.6%
as of March 31, 2024 and -5.1% proforma of IK Partners acquisition,
sponsor money commitments, the remainder of the share buyback
program, BVI disposal and CPI dividend
Share buyback:
- c. 475,000 shares,
totaling €39.5 M, already bought back as of April 24, 2024 under
the €100 M program launched on October 27, 2023. This program
may be opportunistically renewed.
Laurent Mignon, Wendel Group CEO, commented:‘The
first quarter of 2024 was dynamic for Wendel and its portfolio
companies. Consolidated net sales rose organically by 6.9% over the
first three months of the year, driven in particular by the good
performances of Bureau Veritas and Crisis Prevention Institute. We
pursued the deployment of our new strategic directions detailed
during our Investor Day back in December 2023, with the partial
monetization of our stake in Bureau Veritas under favorable
conditions which will gives us additional headroom to implement our
value creation strategy. We will continue to actively support
Bureau Veritas’ management team to achieve its value accretive
strategy described during its Capital Markets Day held on March
20th, 2024. The acquisition of IK Partners will be finalized as
planned in the coming weeks, and we are working to build up a rich
pipeline of quality acquisition opportunities, both for our
third-party asset management and for our principal investment
activities.’ |
Q1 2024 sales of Group
companies
Q1 2024 consolidated sales
(in millions of euros) |
Q1 2023 |
Q1 2024 |
Δ |
Organic Δ |
Bureau Veritas |
1,404.5 |
1,439.5 |
+2.5% |
+8.0% |
Stahl(1) |
205.5 |
225.6 |
+9.8% |
+0.5% |
Scalian(3) |
n.a |
137.5 |
n.a |
n.a |
Crisis Prevention Institute |
24.6 |
26.7 |
+8.8% |
+9.7% |
ACAMS(2) |
19.9 |
18.8 |
-5.5% |
-3.5% |
Consolidated net sales |
1,654.5 |
1,848.2 |
+11.7% |
+6.9% |
(1) Acquisition of ICP
Industrial Solutions Group (ISG) since March 2023 (sales'
contribution of €27.8M)
(2) The sales include a PPA
restatement for an impact of -€0.25M. Excluding this restatement,
the sales amount to €19M vs. €19.9M as of 3M 2023.
(3) Scalian’s reporting date is
different from Wendel’s (refer to 2023 consolidated financial
statements - Note 2 - 1." Changes in scope of consolidation in
2023"). Consequently, Scalian’s sales contribution corresponds to
sales for the 3 months ending as of December 31, 2023.
Q1 2024 sales of equity accounted
companies
(in millions of euros) |
Q1 2023 |
Q1 2024 |
Δ |
Organic Δ |
Tarkett(4) |
698.4 |
668.2 |
-4.3% |
-2.7% |
(4) Sales price adjustments in
CIS countries are historically intended to offset exchange rate
movements, and are therefore excluded from the "organic growth"
indicator.
Sales of Group companies
Bureau Veritas – Strong
start to the year; 2024 outlook confirmed (full
consolidation)
Bureau Veritas’ revenue in the first quarter of
2024 amounted to €1,439.5 million, an +2.5% increase compared
with Q1 2023. Organic growth was +8.0% supported by strong market
trends with more than a third of the portfolio delivering
double-digit organic revenue growth in the quarter, benefiting from
increasing decarbonization trends and energy transition for Marine
& Offshore, and Industry. The rising demand for Sustainability
and ESG-driven services are seen in the growth momentum of
Certification.
The scope effect was a positive 0.1% reflecting
bolt-on acquisitions offset by the impact of a small disposal. The
currency fluctuations had a negative impact of 5.6%, mainly due to
the depreciation of some emerging countries’ currencies against the
euro.
Moody’s assigned the first long-term credit
rating of Bureau Veritas with a A3 with stable outlook, which
reflects the Group’s strong financial structure and competitive
advantage.
2024 Outlook confirmed
Leveraging a healthy and growing sales pipeline,
high customer demand for ‘new economy services’ and strong
underlying market growth, Bureau Veritas expects to deliver for the
full year 2024:
-
Mid-to-high single-digit organic revenue growth;
-
Improvement in adjusted operating margin at constant exchange
rates;
-
Strong cash flow, with a cash conversion1 above 90%.
For more information:
https://group.bureauveritas.com
Stahl – Total sales up 9.8% in Q1 2024,
thanks to a return of organic growth and the acquisition of ICP
Industrial Solutions Group in March 2023.(full
consolidation)
Stahl, the world leader in specialty coatings
for flexible substrates, posted total sales of €225.6 million
in Q1 2024, representing a total increase of +9.8% versus Q1
2023.
Thanks to destocking coming to an end in several
Stahl end markets, volumes have been gradually recovering in the
second half of 2023, and demand showed a further recovery in Q1
2024. Organic growth was +0.5%, driven by a +3.4% organic
volume growth. Stahl acquired ICP’s packaging coatings business in
March 2023, which added another +10.9% to Q1 growth. FX was
negative (-1.6%), mostly through USD and CNY weakening against the
EUR.
Crisis Prevention Institute – Revenue
growth of +10.1% as compared with Q1 2023, +9.7%
organically.
(full consolidation)
Crisis Prevention Institute recorded first
quarter 2024 revenue of $29.0 million, up +10.1% vs. Q1
2023. Of this increase, +9.7% was organic growth, and +0.4% came
from FX movements.
Growth was underpinned by continued expansion of
the installed base of Certified Instructors (CIs) in North America
notably, as well as the related growth in renewals. In addition, Q1
growth was also driven by the expansion of program offerings and
digital offerings, providing CI with more options for specialized,
topic-specific training.
In April 2024, CPI announced the completion of a
$435 million debt financing, proceeds of which were used to
refinance the Company’s existing debt and fund a shareholder
distribution, including a $100 million dividend to Wendel. The
refinancing enhances the Company’s financial position with extended
maturities, increased liquidity and reduced borrowing costs from
SOFR + 525 bps to SOFR + 475 bps, with two further potential
leverage-based step-downs in pricing.
ACAMS – Total sales down -3.1% in Q1,
reflecting continued growth in the core North American banking
sector as well as market share gains in Europe, offset by delayed
agreements with certain large enterprise customers.
(full consolidation)
ACAMS, the global leader in training and
certifications for anti-money laundering and financial-crime
prevention professionals, generated total revenue of
$20.7 million2, down -3.1% compared to the first quarter 2023.
The first quarter benefited from continued growth with its core and
expanded banking customers in North America, and market share gains
in Europe, offset by a sluggish start to the year in Asia and the
delayed renewal of certain large enterprise relationships that are
expected for later this year. The company expects renewed growth
for the balance of the year.
ACAMS strengthened its senior leadership team in
the first quarter of 2024, including the appointment of Neil
Sternthal as Chief Executive Officer, and the hire of Yuctan
Hodge II as new Chief Financial Officer. Mr. Sternthal
joined ACAMS after a long career as an executive with Thomson
Reuters (NYSE: TRI) and joined Mariah Gause, COO and previously
interim CEO, as the two executive officers on the Company’s Board
of Directors.
Tarkett – Organic sales slightly down, in
line with forecasts, continued growth of Sports in a market that is
still solid
(Accounted for by the equity method)
Net revenue of the Group amounted to €668
million, down -4.3% compared to the first quarter of 2023, and
organic growth was -2.7% (or -2.2% including sales price changes in
the CIS region3). Sales prices remained stable over the financial
year, i.e., -0.3% compared to the first quarter of 2023.
The EMEA segment achieved a net revenue of €221
million, down -3.9% compared to the first quarter of 2023, the
North America segment generated net revenue of €199 million, down
-7.1% compared to the first quarter of 2023. Net revenue in the
CIS, APAC and Latin America segment amounted to €107 million, down
-12.3% compared to the first quarter of 2023, a negative currency
effect (-7.3%) mainly linked to the depreciation of the rouble and
a scope effect of -3.7% (integration of activities in Ukraine in
the EMEA segment).Activity in the Sports segment continued to grow
in the first quarter despite an already high baseline. Net sales
amounted to €141 million, up +6.7%.
For full information:
https://www.tarkett-group.com/en/investors/
Scalian - Total sales growth of +1.3% in Q1
2024, outperforming its peers in a context of general industry
slowdown and unfavorable seasonality
(Full consolidation since July 2023.
Q1 2023 and Q1 2024 are like-for-like end of March
unaudited figures.)
Scalian, a European leader in digital
transformation, project management and operational performance
consulting, reported total growth of +1.3% in Q1 2024 and +0.2%
organically, with sales at March 31, 2024 of €140.6 million.
This performance, above that of its peers, impacted by the slowdown
in growth observed in the engineering and IT services market,
amplified by an unfavorable seasonality effect (-2 working days
compared with 2023).
Scalian announced the acquisition of Dulin
Technology in January 2024, a Spanish-based consulting firm
specializing in cybersecurity for the financial sector, and the
recruitment of Nathalie Senechault, former CFO of the Atos Group,
as its new CFO in January 2024.
Scalian seeks to achieve sales of
€1.5 billion by 2028.
IHS Towers (not consolidated) –
IHS Towers will report its Q1 2024 consolidated results in May.
Wendel’s net asset value: €178.1 per share
as of March 31, 2024
NAV as of March 31, 2024, was prepared by Wendel
in compliance with its methodology4.
Net Asset Value was €7,912 million
or €178.1 per share as of March 31, 2024 (see detail in
Appendix 1 below), vs. €160,2 on December 31, 2023,
representing an increase of 11.2%.
The discount to NAV was 48.2% as of March 31,
2024.
2024 other significant
events:
Wendel successfully completes the sale
of 9% of Bureau Veritas’ share capital
Wendel announced on April 5, 2024, that it had
successfully completed the sale of 40.5 million shares in Bureau
Veritas by way of an accelerated bookbuilding process, representing
c.9% of the Company’s share capital, for total proceeds of
approximately 1.1 billion euros. The transaction was carried out at
a price of 27.127 euros, or a discount of 3% on the previous day’s
share price.
As part of the offering, the Lac1 fund, managed
by Bpifrance, purchased c.4% of Bureau Veritas’ share capital.
Pursuant to a governance agreement entered into by Bureau Veritas
and Bpifrance, Bpifrance will be granted the right to nominate one
director at the Board of Directors of Bureau Veritas, and Wendel
will vote in favor of this appointment. The number of directors on
the Board of Directors of Bureau Veritas is to remain at 12 and
Wendel will retain four directors, in line with the current
situation.
Wendel remains Bureau Veritas’ largest
shareholder with a c. 26.5% stake and c. 41.2% of the voting rights
post transaction.
The transaction results in a capital gain of
approximately 800 million euros which is accounted for through
equity and has no impact on Wendel’s income statement, in
accordance with IFRS accounting standards applicable to majority
investments.
Wendel has entered into a lock-up commitment
relating to its remaining Bureau Veritas shares, which will end
after a period of 180 calendar days from the settlement date of the
offering, subject to certain customary exceptions or waiver by the
Sole Bookrunner. Separately, relating to its newly acquired shares,
the Lac1 fund, managed by Bpifrance, has also committed to a
180-calendar day lock-up starting from the settlement of the
offering, subject to certain customary exceptions or waiver by
Bureau Veritas.
1 (Net cash generated from operating activities
– lease payments + corporate tax)/adjusted operating profit.
2 Revenue excludes PPA restatement impact of
$0.3m. Including this restatement, revenue is $20.4m in Q1
2024.
3 Selling price adjustments in the CIS countries
are historically intended to offset currency fluctuations and are
therefore excluded from the “organic growth” indicator
4 See page 226 of the 2023 Universal
Registration Document for the NAV methodology.
Agenda
Thursday May 16, 2024
Annual General Meeting
Wednesday July 31, 2024
H1 2024 results - Publication
of NAV as of June 30, 2024, and condensed Half-Year consolidated
financial statements (post-market release)
Thursday October 24, 2024
Q3 2024 Trading update -
Publication of NAV as of September 30, 2024 (post-market
release)
Thursday December 5, 2024
2024 Investor Day
About Wendel
Wendel is one of Europe’s leading listed
investment firms. The Group invests in Europe and North America in
companies which are leaders in their field, such as ACAMS, Bureau
Veritas, Crisis Prevention Institute, IHS Towers, Scalian, Stahl
and Tarkett. Wendel often plays an active role as a controlling or
significant shareholder in its portfolio companies. Wendel seeks to
implement long-term development strategies, which involve boosting
growth and margins of companies so as to enhance their leading
market positions. With Wendel Growth, Wendel also invests via funds
or directly in innovative, high-growth companies. In 2023, Wendel
initiated a strategic shift into third-party asset management of
private assets, alongside its historical principal investment
activities.
Wendel is listed on Eurolist by Euronext
Paris.
Standard & Poor’s ratings: Long-term: BBB,
stable outlook – Short-term: A-2 since January 25, 2019
Moody’s ratings: Long-term: Baa2, stable outlook
since September 5, 2018
Wendel is the Founding Sponsor of Centre
Pompidou-Metz. In recognition of its long-term patronage of the
arts, Wendel received the distinction of “Grand Mécène de la
Culture” in 2012.
For more information: wendelgroup.com
Follow us on LinkedIn
@Wendel
Press
contacts |
Analyst and investor contacts |
Christine Anglade: +
33 1 42 85 63 24 |
Olivier Allot: +33 1 42 85 63 73 |
c.anglade@wendelgroup.com |
o.allot@wendelgroup.com |
|
|
Caroline Decaux: +33 1
42 85 91 27 |
Lucile Roch: +33 1 42 85 63 72 |
c.decaux@wendelgroup.com |
l.roch@wendelgroup.com |
|
|
Primatice |
|
Olivier Labesse: +33 6
79 11 49 71 |
|
olivierlabesse@primatice.com |
|
Hugues Schmitt: +33 6
71 99 74 58 |
|
huguesschmitt@primatice.com |
|
|
|
Kekst CNC |
|
Todd Fogarty: +1 212
521 4854 |
|
todd.fogarty@kekstcnc.com |
|
Appendix 1: NAV as of March 31,
2024: €178.1 per share
(in millions of euros) |
|
|
March 31, 2024 |
Dec. 31, 2023 |
Listed equity investments |
Number of shares |
Share price (1) |
4,628 |
3,867 |
Bureau Veritas |
160.8/160.8 m |
€27.4/€22.2 |
4,411 |
3,575 |
IHS |
63.0/63.0m |
$3.0/$4.4 |
176 |
251 |
Tarkett |
|
€9.2/€9.1 |
41 |
40 |
Investment in unlisted assets
(2) |
3,290 |
4,360 |
Other assets and liabilities of Wendel and holding
companies(3) |
40 |
6 |
Net cash position & financial assets (4) |
|
2,332 |
1,286 |
Gross asset value |
|
|
10,290 |
9,518 |
Wendel bond debt |
|
|
-2,378 |
-2,401 |
Net Asset Value |
|
|
7,912 |
7,118 |
Of which net debt |
|
|
-46 |
-1,115 |
Number of shares |
|
|
44,430,554 |
44,430,554 |
Net Asset Value per share |
|
|
€178.1 |
€160.2 |
Wendel’s 20 days share price average |
|
€92.3 |
€79.9 |
Premium (discount) on NAV |
|
|
-48.2% |
-50.1% |
(1) Last 20 trading days
average as of March 31, 2024 and December 31, 2023.
(2) Investments in unlisted
companies (Stahl, Crisis Prevention Institute, ACAMS, Scalian,
Constantia Flexibles and Wendel Growth as of December 12, 2023, and
Stahl, Crisis Prevention Institute, ACAMS, Scalian and Wendel
Growth as of March 31, 2024). Aggregates retained for the
calculation exclude the impact of IFRS16.
(3) Of which 1,241,948 treasury
shares as of March 31, 2024 and 914,003 as of December 31,
2023.
(4) Cash position and financial
assets of Wendel & holdings.
Assets and liabilities denominated in currencies
other than the euro have been converted at exchange rates
prevailing on the date of the NAV calculation.
If co-investment and managements LTIP conditions
are realized, subsequent dilutive effects on Wendel’s economic
ownership are accounted for in NAV calculations. See page 246
of the 2023 Universal Registration Document.
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