Brunel Q3 2024 results: Stable revenue in challenging markets

Amsterdam, 1 November 2024 – Brunel International N.V. (Brunel; BRNL), a global provider of flexible workforce solutions and expertise, today announced its third quarter 2024 results.

Q3 Highlights

Revenue of EUR 338.6 million, down 1% (down 2% organically)
Gross Profit of EUR 67.1 million, down 8% (down 10% organically)
Underlying EBIT of EUR 17.3 million, down 8% (down 17% organically)
Cost reduction plan with annual savings of EUR 20 million fully executed
Handover from Jilko Andringa to Peter de Laat as CEO, external search for CFO

YTD Highlights

Revenue of EUR 1,030.3 million, up 4% (up 5% organically)
Gross Profit of EUR 201.3 million, down 3% (down 3% organically)
Underlying EBIT of EUR 42.5 million, down 7% (down 8% organically)
Free cash flow EUR 36.1 million (2023: EUR 4.4 million)
Earnings per share of EUR 0.43 (2023: EUR 0.56)

Peter de Laat, CEO: “Brunel’s business is centered on supporting our clients with specialists and flexibility on significant investment and R&D projects. Due to the current uncertainty in many parts of the world, our clients are taking longer to make investment decisions and start new projects, which is impacting our revenue and profitability in the short term. At the same time, this uncertainty is beneficial for the longer term, as many companies want to remain flexible, and the strong pipeline of projects gives us confidence in meeting our long-term targets.

In anticipation of lower activity levels in the second half of this year, we successfully implemented and fully executed a comprehensive cost reduction plan during this quarter, delivering annual cost savings of EUR 20 million. We have established a leaner overall cost base, already leading to a decrease of our current cost levels. Our focus remains on optimising resources across the business amidst changing conditions and securing long-term profitability.

During the third quarter, the already challenging automotive market in the DACH region further weakened. Since we have shifted our focus earlier this year to industries that offer opportunities, we have seen our revenue increase in those industries. However, it will take some time before this growth compensates the decline in other industries.

The delays in starting new projects in Asia have impacted our performance in Q3 slightly more than expected earlier. Based on our growing pipeline of projects scheduled to start in Q1 2025, we are optimistic about positive revenue development in Asia next year. In The Netherlands, clients adjusted their risk appetite towards freelancers using the opportunity to employ them directly.

Our pipeline remains healthy, with several new projects won across all regions, including providing inspection services. These new projects will start contributing in the course of Q1 2025.

We will continue investing in our global IT and digital infrastructure to support our efficiency and client delivery. Our new cloud-based front office sales system, enhanced with AI, will be fully implemented in the remaining regions early next year.

Considering all the circumstances and developments, I am confident that with a lean cost base and strategic positioning against important megatrends, we are prepared for a successful start of 2025.”

Results call
Today (1 November 2024), at 10:30 AM CET, Brunel will be hosting a results call. To join the conference call, use conference ID 357455 and dial, depending on your location. The dial-in number for the Netherlands is +31 85 888 7233. Other locations – see www.brunelinternational.net.

You can listen to the call through a real-time audio webcast. You can access the webcast and presentation at https://events.q4inc.com/attendee/920811026. A replay of the presentation and the Q&A will be available on our website by the end of the day.

Attachment
Press Release Q3 2024

Source: Brunel International NV