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Financial Results 1H 2024
Message from the executive chairman of the board
A half year with high quality of growth
After the brilliant results achieved in 2023, which provide a challenging basis for comparison, Hera manages to deliver further progress in the first half of 2024, as proven by EBITDA increasing by 2%, EBIT improving by 2.8%, and Earnings per Share up 16%. The half-year growth in Group EBITDA is based on structural components and fully organic: a strong impetus came from the positive dynamics of Networks, where Hera has taken full advantage of the new regulatory framework, and from the strong position in industrial waste treatment.
Financial Results 1H 2024
Looking at the figures
Focus on 1H 2024 results
In the first six months of 2024, Hera confirmed its continued ability to improve operating margins due to the strength of its structural business portfolio, even against a backdrop of energy prices returning to more normal levels and the expiry of the 110% Ecobonus benefits. Against a 33.3% drop in Revenues, Group’s half-year results post a 2.0% progress at EBITDA and a 2.8% increase at EBIT.
Financial Results 1H 2024
Hera on stock exchange
Still room for appreciation, even after the rise already achieved
Due to solid fundamentals, confirmed by healthy half-year results, Hera strengthens the visibility of further returns to offer to shareholders, who have been rewarded at the end of last June with the distribution of a dividend of 14 euro cents. On top of the dividend yield, the shareholder return includes a price increase of nearly 20% year-to-date that has led the stock to outperform all benchmark indices.
Financial Results 1H 2024
Stories
With a 25 % increase in the customer base, a new phase of further growth begins
In an increasingly liberalised market, Hera has a clear plan to make the most of expansion opportunities in the Energy areas, as proven by the entry in its portfolio of one million new customers with the Gradual Protection Service
Financial Results 1Q 2024
Message from the executive chairman of the board
Hera accelerates value creation
In the first quarter of 2024, following record growth in the previous year, Hera again succeeded in posting healthy operating performance, with EBIT up 4.2%, resulting in a 12.2% increase in Earnings per Share. Regulated businesses are once again having a significant impact on growth, whereas Hera had lately only been relying on additional efficiencies and service quality rewards to produce sound results
Financial Results 1Q 2024
Looking at the figures
Focus on Q1 2024 results
In the first quarter of 2024, Hera achieved an increase of 1.7% at EBITDA level and of 4.2% in EBIT, despite the 40.9% decline of Revenues due to the normalisation of energy commodity prices. Networks EBITDA provided an incremental contribution of 13.5 m€ at Group level, leveraging on the positive impacts of the new regulatory framework, while the Waste area added for 2 m€, offsetting the negative impacts of the scenario.
Financial Results 1Q 2024
Hera on stock exchange
Hera stock outperforms all the benchmark indices
The first-quarter 2024 report released today enhances the visibility of Hera’s ability to deliver an attractive return to its shareholders: the profitability growth, as measured by both ROI and ROE, supports an EpS increase of more than 12%, which is also matched by a dividend yield of around 4%. Shareholders will receive a payment of 14 eurocents on 24 June, as resolved by the Shareholders’ Meeting held on 30 April.
Financial Results 1Q 2024
Stories
A “purpose-driven leadership” for the strategy’s full success
In line with the evolving context, Hera has identified a new leadership model that it is now rolling out across the entire corporate population. Born from listening to the 10,000 people who work in the Group, the model is enriched by the use of a Generative Artificial Intelligence app, which evaluates behaviours in everyday life and allows practising those same behaviours by improving them according to feedback from reality.
Financial Results Y2023
Message from the executive chairman of the board
EBITDA accelerates in 2023 and comes close to 1.5 billion
Fiscal Year 2023 shows very healthy performance at operational level, with an EBITDA increase of 15% translating into a 17% EPS increase. The strong EBITDA improvement reflects a “structural” component connected to organic growth and M&A – typical Hera’s development levers over time – which is complemented by a significant contribution from the markets of Last Resort and Energy Efficiency services under the Ecobonus incentives.
Financial Results Y2023
Looking at the figures
Focus on FY 2023 results
In 2023, Hera achieved an EBITDA increase of 15.4%, in a framework featuring a 25.8% decline in Revenues, as energy commodity prices returned to levels closer to those before the outbreak of the conflict in Ukraine. The EBITDA of Energy areas, which has determined 182.5 m€ of the total Group EBITDA progress of 199.7 m€, posted a significant increase (+40.6%), due to the fast expansion of the customer basis (+c.330,000) and the broadening of the services offered, including those in the Energy Efficiency business.
Financial Results Y2023
Hera on stock exchange
2023 TSR is new fuel for the share’s ongoing rally
The presentation of the 2023-2027 Business Plan, held on 24 January 2024, gave further boost to the uptrend that the Hera stock started in early October 2023. At recent prices around 3.3 euro, the share price has increased by more than 30% since last autumn’s low; nonetheless, an attractive gap of around 15.5% remains against the consensus target price.
Financial Results Y2023
Stories
For Hera, great benefits from higher Shared Value creation
With a win-win approach, Hera has long chosen to strategically position increasing EBITDA shares in activities that contribute to strengthening the Group’s margins while offering tangible social and environmental benefits. Following this pioneering vision, Hera dedicated 2.5 billion investments to initiatives with higher impact and visible returns.
Business Plan 2023-2027
Message from the executive chairman of the board
As growth accelerates, more value to shareholders
With the 2023-2027 Business Plan, Hera clearly defines the path to follow over the coming years. Even in the new, challenging scenario, Hera continues to leverage on a strategy that has been proven effective over time, with well-defined priorities in terms of value creation, sustainability and resiliency.
Business Plan 2023-2027
Looking at the figures
The business strategy at the basis of 2027 expected ROI
Over the five-year period, Hera will concentrate more than half (about 55%) of the 4.4 billion euro investment plan in regulated businesses (Networks and Waste collection), with the aim of enhancing the existing infrastructure and seizing the opportunities of the regulatory framework, thus generating returns with high visibility and keeping the risk profile low.
Business Plan 2023-2027
Hera on stock exchange
Higher shareholder returns from an acceleration plan
The rally that Hera’s shares have experienced since last October has only partly covered the wide appreciation room against the average target price of analysts in coverage – currently at 3.53 euro. Preliminary results for the Year 2023, above market expectations, will provide further visibility on management’s actual ability not only to hit strategic targets, but to achieve them well in advance.
Business Plan 2023-2027
Stories
A more ambitious Business Plan? Numbers prove it
The new 2023-2027 Plan envisages a significant acceleration of growth compared to the previous Plan, whose horizon was 2026. The engine behind more dynamic development lies in higher investments planned over the five-year period. The EBITDA drivers take shape through the number of funds invested, but even through the quality of the selected projects, which offer more attractive returns, and the efficiencies Hera aims to gain in regulated businesses.
Financial Results 9M 2023
Message from the executive chairman of the board
EBITDA over 1 billion, with high-quality growth
The first nine months of 2023 showed double-digit growth, moving from EBITDA to the P&L bottom line. A set of clear features backs up the quality of the growth achieved over the period. Indeed, this was a cross-sectional growth, which involved operational, financial, and fiscal management, as well as all businesses across the multi-utility portfolio.
Financial Results 9M 2023
Looking at the figures
Focus on nine-month 2023 results
In the first nine months of the current fiscal year, Hera achieved an EBITDA growth of 15.1%, despite a 22.3% decrease in Total Revenues, due to falling energy commodity prices. Energy areas, which explain 112.4 m€ of the total EBITDA progress of 132.0 m€, recorded a significant increase (+43.8%), leveraging on a fast growth of the customer basis (+310 thousand) and a wide range of services provided, including those successfully addressing the Decarbonisation issue.
Financial Results 9M 2023
Hera on stock exchange
In a less uncertain environment, Hera represents an ideal quality investment
The last three months have seen an unfavourable scenario for equity investment: interest rates rising steadily, reaching 20-year peaks; the Chinese economy afflicted by persistent weakness; and, on 7 October, the outbreak of war in the Middle East, which exacerbated geopolitical tensions. The indices thus showed a volatile trend. The performance of Hera’s shares reflected this market sentiment: multiples have therefore not yet discounted the brokers’ upward revisions to estimates after half-year results.
Financial Results 9M 2023
Stories
Ever more, Hera at the heart of the water infrastructure development in Italy
With 1 additional billion, Hera will continue to carry out investments to ensure that Water is supplied, purified and distributed to meet the evolving demand