Focusrite PLC, a global music and audio products company, has released its half-year results for the six months ended 29 February 2024. The company's revenue nearly doubled from £40 million in the half-year preceding the global COVID-19 pandemic to £77 million in the first half of 2024. The demand for its flagship Scarlett product range is 50% higher than FY19 levels, indicating a continued market share growth. The Content Creation division faced challenges due to macro-economic weakness and an oversupply in the channel, while the Audio Reproduction division experienced significant growth.
The financial highlights for HY24 include a 10.9% decrease in revenue, with ongoing challenges in the Content Creation market outweighing the strength seen in the Audio Reproduction division. The gross margin decreased to 45.8%, reflecting ongoing challenges in the market. Adjusted EBITDA stood at £12.1 million, down from £18.1 million in HY23, while operating profit was £4.7 million, reflecting the reduced EBITDA and increased amortization from acquisitions and new product launches. The net debt increased to £27.3 million due to higher working capital levels.
Despite the challenges, the company remains encouraged by its product registration data, which is outperforming the market. The sustained robust performance of the Audio Reproduction division offers a positive counterbalance to the ongoing headwinds in Content Creation. Focusrite is confident of meeting its full-year expectations, with a series of planned product launches in the coming months and a continued emphasis on strategic growth initiatives. The company also acquired Sheriff Technology, which is contributing positively to the Audio Reproduction division.
In conclusion, Focusrite plc's half-year results for 2024 reflect a mixed performance across its divisions, with the Content Creation division facing challenges while the Audio Reproduction division experienced significant growth. The company remains optimistic about meeting its full-year expectations, supported by planned product launches and strategic growth initiatives.