Elia Group Full Year 2023 Earnings: Misses Expectations

Elia Group (EBR:ELI) Full Year 2023 Results

Key Financial Results

• Revenue: €3.84b (up 6.3% from FY 2022).
• Net income: €324.5m (down 5.0% from FY 2022).
• Profit margin: 8.4% (down from 9.4% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: €4.42 (down from €4.80 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Elia Group Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 8.2%. Earnings per share (EPS) also missed analyst estimates by 2.2%.

The primary driver behind last 12 months revenue was the 50Hertz Transmission segment contributing a total revenue of €2.55b (66% of total revenue). Notably, cost of sales worth €2.30b amounted to 60% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to €557.5m (46% of total expenses). Explore how ELI's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 17% p.a. on average during the next 3 years, while revenues in the Electric Utilities industry in Europe are expected to remain flat.

Performance of the market in Belgium.

The company's shares are down 3.1% from a week ago.

Risk Analysis

It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Elia Group (at least 2 which make us uncomfortable), and understanding them should be part of your investment process.

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