Trading update 3Q24

Kortrijk, Belgium, 17 October 2024, 7:30 am – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the 3rd quarter ending 30 September 2024.

Third quarter 2024 highlights

•      Gradual recovery, led by the Healthcare division and the Americas region, while market conditions in EMEA remain challenging

•      Topline gap versus last year narrowing, with orders and sales in 3Q24 at -3% yoy

•      Solid order book at end of 3Q24 of 531.4 million euro, 7% higher than at the start of the year and flat versus June 2024

•      Rolling out new products across all divisions

•      Outlook for 2H24 sales around the level of last year, at a full year EBITDA margin of 11-13%

Executive summary 3Q24

Group topline

Quarter-by-quarter overview

Order intake in the third quarter amounted to 232.5 million euro, 3% lower than in the same quarter last year, reflecting growth for Healthcare offset by declines in Entertainment and Enterprise. Demand was strongest in the Americas, with notably higher order intake in Healthcare after excess customer inventory had been consumed by mid-year. Order intake in EMEA and APAC declined versus last year. The orderbook stood at 531.4 million euro, about the same level as mid-year. The book-to-bill ratio for the third quarter was above 1.

Sales for the third quarter were 223.0 million euro, 3% lower year-over-year. Growth in both the Americas and APAC was offset by lower sales in EMEA. Healthcare sales grew on an uptake of Diagnostic Imaging in its important American market. In Enterprise, Control Rooms grew in all regions on a strong orderbook, offset by a mid-single digit decline for Meeting Experience, with lower sales in EMEA and APAC, and growth in the Americas. In Entertainment, Immersive Experience sales declined, partially driven by delayed customer orders in anticipation of new product launches. Cinema’s sales were about flat with the year before.

Barco progressed well with a wide range of new product introductions. In Healthcare, a portfolio of home reading radiology displays was introduced at the start of the third quarter, followed by the introduction of the flagship Coronis OneLook mammography display at the start of the fourth quarter. In Enterprise, Barco CTRL delivered a major software release in July, adding new important user features. In Entertainment, the mid-segment projector I600 is lightening up immersive venues since the end of the second quarter and launches of the flagship QDX projector and Encore 3 image processing software are planned for later in the year. Finally, HDR Lightsteering hit the big screen with the start of a pilot program in major US exhibition centers.

Quote of the CEO, An Steegen

“In the third quarter of 2024, we saw a gradual recovery, with differences in results by region and division. Our Healthcare business was a bright spot, with sales growing and a strong pick-up in orders following the normalization of customer inventory levels. Barco had another good quarter in the Americas, bringing the topline year-to-date in this region above last year’s. The EMEA markets continue to experience challenging market conditions across all divisions.

As we advance through the year, we continue executing our strategy at full force. Our focus for the second semester is on the many planned new products introductions, in addition to cost containment actions and cash flow management.”

Outlook 2024 and beyond

The following statements are forward looking on a like-for-like basis and actual results may differ materially.

While we see a gradual recovery, market conditions in EMEA continue to be challenging. Management expects a topline in the second half around the level of last year. From 2025, we expect topline growth on a full year basis.

Management confirms its expectation of an EBITDA margin of 11-13% for the full year 2024.