IDEAL Holdings: Strong financial performance and increased profitability affirm the successful investment strategy
IDEAL Holdings delivered robust growth and improved performance across all key financial metrics in FY2024, affirming its investment strategy of organic expansion, strategic portfolio management, and targeted acquisitions of companies with high resilience and growth potential.
Highlights for FY 2024:
Mr. Lambros Papakonstantinou, Chairman of the Board of IDEAL Holdings, stated: "The strong performance of our investments during 2024 led to a significant increase in our metrics and the continuation of our upward trajectory, confirming expectations and simultaneously highlighting our ability to identify and capitalize on investment opportunities with high growth potential. The acquisition agreement of BARBA STATHIS holds particular significance for us as it represents our first investment in a historic name of the Greek industry. This acquisition is a milestone for us, marking our entry into the food sector, a field with steady growth and resilience to economic fluctuations, aligning with our philosophy of investing in leading companies. Our strategic goal remains to leverage the company's available capital to reflect our true value in the share price and to create long-term value for the companies themselves, employees, investors, shareholders, and the overall economy of the country."
Organic growth and strategic moves strengthened financial figures
The consolidated financial figures were strengthened by the organic growth of the companies in the ICT sector, the addition of the results of Attica Department Stores to the 2024 fiscal year and the acquisition of 75% of the shares of the company under the name BLUESTREAM SOLUTIONS S.A. (“Bluestream”), amounting to €12.2M. In addition, IDH proceeded to complete the sale of the Industry sector to Guala Closures (“Guala”) for €115.5M yielding total profits of €74.6M.
The ICT sector and specialized retail are the driving forces
The ICT sector (BYTE, ADACOM, IDEAL Technology, BlueStream and their subsidiaries) showed an increase in comparable revenues by 55% to €148.5M due to the implementation of significant ICT and Cybersecurity projects in Greece and abroad. At the same time, the continued addition of new services provided either by existing companies or through acquisitions of new ones, such as BlueStream, expanded the customer base and led to an increase in revenues. As a result of the increase in revenues, comparable Earnings Before Taxes, Interest and Depreciation (Comparable EBITDA) increased by 31% to €16.3M, while comparable Profits Before Taxes increased by 45% to €13.4M.
In the specialty retail sector, comparable revenues increased by 9% to €231.9M as a result of the maturity of the investment plan through the addition of the City Link store extensions and the renovation of the Golden Hall store. In addition, a significant increase was achieved in e-shop sales, due to the gradual addition of new fashion brands. In addition, sales to third-country travelers (Tax Free) in all department stores increased significantly (+24%). Specifically, comparable EBITDA increased by 15% to €27.4M, while comparable EBIT increased by 19% to €19.9M.
Investment initiatives and new strategies shaping dynamic growth
Ideal Holdings has reached an agreement for the acquisition of BARBA STATHIS, one of the largest acquisitions in the Greek food market in recent years, expanding its diversified portfolio of holdings with an additional sector that has high resilience and strong growth prospects. The transaction is expected to be completed in the first half of 2025.
In parallel, it has restructured the ICT sector by establishing a new sub-group with Byte as the parent company with the aim of providing a comprehensive range of specialized ICT solutions and services, simplifying the group's structure, optimizing costs and functionality and, at the same time, enhancing tax efficiency and utilization of deferred tax benefits. It is noted that the new sub-group does not include the technology product distribution companies, IDEAL Technology and Metrosoft, which are in the process of merging with the company.
