Hera Group: 1H 2024 results approved
Hera Custom Facet Publish Date
Custom Facet
Category Facet
Hera Custom Facet Publish Date
Search Bar
Asset Publisher
The consolidated half-year report at 30 June indicates growth in the Group’s main operating-financial indicators and shows its considerable financial solidity, fully in line with the targets set out in the Business Plan.
![News](/documents/1514726/0/img_1H2024_banner_en.png/ad1ad79f-1206-86a0-2e25-c34c127545d7?t=1722424548299)
Financial highlights
- Revenues at 5,536.8 million euro (-33.3%)
- Ebitda at 732.7 million euro (+2%*)
- Net profit for shareholders at 218.4 million euro (+16.4%*)
- Gross operating investments at 344.4 million euro (+8.2%)
- Net financial debt at 4,063.5 million euro (-2%), with Net debt/Ebitda ratio at 2.69x (-10%)
Business highlights
- Contribution to structural growth coming from all business areas
- Significant increase in the energy customer base, further consolidating the Group’s position as Italy’s third largest operator in this sector
- Ongoing innovative initiatives to support sustainable growth benefitting all stakeholders, with a clear improvement in shared-value Ebitda, at 53% (+1%), and further projects favouring employees, suppliers and the reduction of climate-changing emissions
Today, the Board of Directors of the Hera Group, chaired by Executive Chairman Cristian Fabbri, unanimously approved the consolidated results for the first half of 2024.
The half-year ended with increased operating results and investments compared to the same period of the previous year, within a more stable market scenario due to the reduced volatility of energy commodity prices. The Group’s good operating and financial performance is the result of its consolidated multi-business model, balanced between regulated and free-market activities.
The consolidated half-year report at 30 June demonstrates, once again, Hera’s considerable financial solidity and confirms its focus on the resilient and sustainable growth of the company and the local areas served, creating value for all stakeholders.
Cristian Fabbri, Executive Chairman of Hera Group:
![](/documents/688182/0/bubble_fabbri_primo_piano.png/3ebc62fd-6be2-3c74-63a0-98fb87b9c28f?t=1683618031830)
“The results for the first half of 2024, with main economic and financial indicators increasing, also testify to the constant generation of value for all our stakeholders. Ebitda rises to 732.7 million euro, thanks to the contribution of core business areas, and a strong improvement in ROI is recorded, which stands at 9.6% - 10% higher than in the same period last year - fully confirming a profitability strongly underpinned by the growth of ‘structural’ activities. This further progress, following up on the extraordinary results of 2023, shows our Group’s ability to achieve the goals included in our Business Plan, creating the conditions for further development, supported by an 8% increase in investments. The creation of value for shareholders, to whom dividends were distributed with a 12% increase, in the first half of the year, was accompanied by significant results in ESG factors, including an increase in shared-value Ebitda, now reaching 53% of total Ebitda, the definition of a strategy to reach the Net Zero target by 2050, the signing of the Good Work Deal and the supplier development programme, which further confirm the centrality of the environment, workers and suppliers as protagonists and beneficiaries of the path for sustainable development defined in our Business Plan, in favour of the communities in which we operate. Moreover, in July we further expanded our Electricity business adding one million customers, following the recent award of the tender for the Gradual Protection Service for non-vulnerable household customers”.
Orazio Iacono, CEO of the Hera Group:
![](/documents/1514726/0/Img_stone_iacono.png/885cb636-5cfe-8e5c-e0a4-f08d4a40f50c?t=1711447123001)
"Our half-year report shows a significant increase of over 16% in net profit attributable to shareholders, which rose to over 218 million euro. Industrial growth was reinforced by a relevant contribution coming from the financial structure. Financial solidity was guaranteed by the net debt/Ebitda ratio, which stands at 2.69x, confirming a full financial flexibility. Growth in operating margins was due, in particular, to the excellent performance of networks, which in total contributed almost 270 million euro to the Group's EBITDA, equal to 11%, thanks in particular to energy distribution services and the water cycle, and to the acceleration of growth in the waste area, which rose to 172 million euro (+5.3%). An infrastructure platform and an integrated multi-business strategy that makes the most of industrial synergies among the Group’s subsidiaries confirm our role as enabler of the green transition and the resilience of the activities carried out in the served areas. The achievement of the Net Zero target to 2050 will also be supported by technological innovation, such as, for example, the installation of carbon capture and storage technologies on several of the Group's waste-to-energy plants”.
Revenues at over 5.5 billion euro
Revenues amounted to 5,536.8 million euro, as against 8,297.5 million at June 30, 2023 (-33.3%), mainly due to lower energy prices and lower values in trading activities. More generally, the greater stability seen in commodity prices positively influenced the performance of the entire operating and financial management during the period.
Ebitda rises to 732.7 million euro
Ebitda for the first half of 2024 rose to 732.7 million euro (+2%*), compared to 718.3 million euro at June 30, 2023. This growth was driven by all core activities in the portfolio, from the integrated water cycle to both regulated and free-market activities in waste management and traditional energy sales and distribution activities, allowing the Group to compensate for the loss of margins related to the super-bonus.
EBIT and pre-tax result increase
Ebit at June 30, 2024 grew to 385.1 million euro, up 2.8%* from 374.7 million euro seen in the first half of 2023. This positive performance was linked to lower provisions for bad debts, mainly involving energy customers due to lower commodity prices. This decrease almost completely offset the rise in amortisation related to development investments, in line with the Business Plan.
Significant improvement was also seen in financial operations, thanks to the gradual easing of the financial absorption caused by the energy crisis and the ensuing financial rationalisation, which led to savings in expenses related to debt, and income from tax credits for incentivised work in 2023. The positive results of operational and financial management led the pre-tax result to stand at 329.6 million euro (+16%*), as against 284.2 million at June 30, 2023.
Net profit for shareholders increases significantly, reaching 218.4 million euro
The net income rose to 237.3 million euro (+14.1%*), compared to 208 million in the first half of 2023, after a tax rate at 28%, as against 26.8% at June 30, 2023, the latter underpinned by non-recurrent tax benefits. A significant increase also occurred in net profit for Group Shareholders, coming to 218.4 million euro (+16.4%*), as against 187.7 million at June 30, 2023. These results confirm the creation of value for all stakeholders, perfectly in line with the expectations of the Plan.
Operating investments rise and Group solidity further strengthened
The amount of investments made confirms Hera’s strategic plans and involved significant work on plants, networks and infrastructures. Operating investments in the first half of the year, including capital grants, amounted to 344.4 million euro, up 8.2% from 318.4 million euro at June 30, 2023.
The total amount of net financial debt came to 4,063.5 million euro, compared to 3,827.7 million at 31 December 2023 and improving by 2% compared to the first half of 2023. The net debt/Ebitda ratio stood at 2.69x, well below the Group’s historically conservative policy, confirming the Group’s financial solidity. Maintaining low financial leverage gives Hera flexibility to further expand operations. In addition, to secure any additional extraordinary liquidity needs, the Group still has a 450 million euro sustainable revolving line, maturing in 2028, and a 460 million euro EIB financing line, usable within September 2026 with a sixteen-year term.
For further information
Press release
Visit Investors web area