Wolters Kluwer Reports Strong Performance in First Half of 2024

Financial Highlights

Wolters Kluwer, the Dutch information services company, has reported impressive financial results for the first half of 2024. The company's revenues increased by 5% organically, reaching €2,855 million 1

1

. Adjusted operating profit saw a 7% organic growth, amounting to €712 million, while the adjusted operating profit margin improved to 24.9% 2

2

.

Diluted EPS increased by 16% to €1.86, and adjusted free cash flow stood at €476 million. The company's return on invested capital (ROIC) also improved to 14.7%, showcasing efficient capital management 1

1

.

Business Segment Performance

Wolters Kluwer's diverse portfolio of business segments contributed to its overall growth:

1. Health: Reported 6% organic growth, driven by clinical solutions and health learning, research & practice 2

   2

   .
2. Tax & Accounting: Achieved 7% organic growth, with strong performances in corporate performance solutions and professional tax software 1

   1

   .
3. Financial & Corporate Compliance: Experienced 4% organic growth, supported by finance, risk & reporting and legal services 2

   2

   .
4. Legal & Regulatory: Saw 3% organic growth, with legal software and information solutions leading the way 1

   1

   .

Strategic Initiatives and Acquisitions

The company has been actively pursuing strategic initiatives to enhance its market position. Notable acquisitions in the first half of 2024 include:

1. Della AI: An artificial intelligence company specializing in contract analysis 2

   2

   .
2. CaseWorthy: A provider of case management software for human services organizations 1

   1

   .

These acquisitions align with Wolters Kluwer's strategy to strengthen its technological capabilities and expand its service offerings.

Outlook and Guidance

Based on the strong first-half performance, Wolters Kluwer has raised its full-year 2024 outlook. The company now expects:

1. Adjusted EPS growth to be in the high-single-digits 2

   2

   .
2. Adjusted free cash flow to reach €1,125-€1,175 million 1

   1

   .
3. Adjusted operating profit margin to be approximately 26.4%-26.8% 2

   2

   .

Sustainability and ESG Initiatives

Wolters Kluwer has also made strides in its environmental, social, and governance (ESG) efforts. The company reported a 13% reduction in greenhouse gas emissions compared to the first half of 2023 1

1

. Additionally, it has maintained its position in various sustainability indices, including the Dow Jones Sustainability Indices and the FTSE4Good Index 2

2

.

Management Commentary

Nancy McKinstry, CEO and Chairman of the Executive Board, commented on the results: "I am pleased to report a strong first-half performance, with all divisions delivering organic growth and margin improvement. We are making good progress on our strategic priorities and have completed several bolt-on acquisitions that extend our position in key markets." 1

1

The company's robust performance and strategic initiatives position it well for continued growth in the evolving information services landscape.