The sale of Sofinsod is reflected in the decrease in Non-current assets. The decrease in shareholder's equity is explained by the special interim dividend paid in August 2024 following the sale of Sofinsod, as well as by the Pluxee spin-off on February 1, 2024.
The strong decrease in Assets and Liabilities held for sale or distribution is linked to the spin-off of Pluxee and the disposal of the Homecare activity. The remaining amounts as of August 31, 2024 these accounts relate to Denali Universal Services, specialized in security services to the private and public sectors in Alaska, which was divested by the Group on September 3, 2024.
| (in million euros) | AUGUST 31, 2024 | AUGUST 31, 2023 AJUSTED |
|---|---|---|
| Gross debt | Gross debt AUGUST 31, 20244,734 |
Gross debt AUGUST 31, 2023 AJUSTED5,588 |
| Net debt | Net debt AUGUST 31, 20242,600 |
Net debt AUGUST 31, 2023 AJUSTED2,918 |
| Gearing ratio | Gearing ratio AUGUST 31, 202468% |
Gearing ratio AUGUST 31, 2023 AJUSTED64% |
| Net Debt ratio (Net Debt/EBITDA(1)) | Net Debt ratio (Net Debt/EBITDA (1)) AUGUST 31, 20241.7x |
Net Debt ratio (Net Debt/EBITDA (1)) AUGUST 31, 2023 AJUSTED2.2x |
(1) For the new definition of EBITDA, please refer to the Alternative Performance Measure in section 3.3.9
As of August 31, 2024, Net debt was 2,600 million euros, down from 2,918 million euros at the end of Fiscal 2023 (adjusted). This reduction, combined with the year-on-year increase in EBITDA of 11.5%, has resulted in a net debt to EBITDA ratio of 1.7x, well below the levels at the end of Fiscal 2023 of 2.2x, and fully back into the targeted range of 1-2x. Despite the reduction in net debt, gearing is up by 4 points at 68%, due to the reduction in equity.
During the fiscal year, two bonds were reimbursed: in November 2023, 300 million euros, due in May 2025, carrying an interest rate of 1.125% and in January 2024, 500 million euros at term, carrying an interest rate of 0.5%. As a result, the average interest rate on the bonds at the end of the Fiscal 2024 was at 1.8%, against 1.7% at the end of Fiscal 2023.
At year end, the Group's gross debt of 4.7 billion euros was 70% euro-denominated, 23% dollar denominated and 6% sterling denominated, with an average maturity of 3.3 years, 94% fixed-rate and 100% covenant-free.
As of August 31, 2024, Operating cash (including bank overdrafts of 3 million euros) reached a total of 2,134 million euros.
Moreover, at the end of Fiscal 2024, unused credit lines totaled 1.75 billion euros, with a 5-year maturity, having been renewed by anticipation in August 2024.
Fiscal 2024 was marked by the spin-off and listing of Pluxee on February 1, 2024, and the disposal of Sofinsod for 918 millions euros on August 23, 2024.
Other scope changes of Fiscal 2024 included:
Disposals net of acquisitions amounted to 986 million euros.
Earnings per share (EPS) from continuing operations was 5.04 euros against 3.83 euros in Fiscal 2023, up +31.6%. The weighted average number of shares for Fiscal 2024 was more or less stable at 146,451,943 compared to 146,127,620 shares for Fiscal 2023. Underlying EPS from continuing operations was 5.29 euros, up +17.3% compared to the prior year.
The Board proposes an ordinary dividend of 2.65 euros, up 17.8% and in line with the Group policy of a 50% pay-out ratio. Both the ordinary dividend and the 6.24 euros special interim dividend paid in August 2024 will be proposed at the Shareholders Meeting on December 17, 2024.
