INVESTOR NEWS - Gruppo Hera -

EBITDA accelerates in 2023 and comes close to 1.5 billion

Message from the Executive Chairman of the Board

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.

The Energy area played a driving role in the growth of the Group’s EBITDA, leveraging on a significant expansion of the customer base, which Hera proved to be able to manage while improving margins.

Cristian Fabbri

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.
In the Waste area (+4.6%), where also the second bio-methane plant entered into operations, Hera recorded a growth both in prices and in volumes, while leveraging the successful integration of the activities of ACR Reggiani, after the acquisition of 60% of its capital in March 2023.

Jens Klint Hansen

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.
Following the release of the new Plan, the brokers in the share coverage revised their estimates upwards and consequently updated their evaluations on higher levels. Therefore, despite the significant rise achieved by the share price in the meantime, there is still a large room to be filled, given the remaining undervaluation.

Jens Klint Hansen

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.

The significant results achieved – recognised by the ESG rating agencies as proven by its inclusion in prestigious sustainability indices – have made Hera an attractive reality in which specialised funds can invest.