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.
With the 2023-2027 Plan presented in January, management has outlined a clear path of continuous improvement in profitability over time as well as a dividend distribution policy that reflects the expected progress in earnings. Therefore, the prospect of attractive shareholder remuneration goes beyond the healthy results of the quarter, with an extension to the perspectives of the coming years.
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.
The Energy area delivered a strong organic growth due to the broader customer basis, thus almost wholly compensating for the lower contribution of Energy Efficiency services, as the 110% Ecobonus tax incentives expired at the end of 2023.
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.
At the heart of the new leadership model is the belief that the more people find an alignment between the purpose of what they do and the purpose of the Company, the more confident Hera will be in the successful execution of its strategy.