Alcadon Group (ALCA) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales rose 15% year-over-year to SEK 425 million, with 8% organic growth and improved market conditions, especially in data centers and broadband.

• EBITA grew 167% year-over-year to SEK 30 million, with a margin of 7.2% (7.7% excluding non-recurring items).

• Operating cash flow reached SEK 60 million in Q2, with cash flow per share at SEK 2.47.

• Acquisition of Wood Communications in Ireland completed in April, expanding European presence and product synergies.

• CEO transition announced: Sonny Mirborn to be succeeded by Fredrik Valentin by January 2025.

Financial highlights

• Net sales reached 1,637 MSEK (R12), with a CAGR of 32% since 2019.

• EBITA R12 was 119 MSEK; Q2 EBITA margin at 7.2% (3.1% last year); gross margin increased to 26.7%.

• Earnings per share improved to 0.45 SEK in Q2 (from -0.1 SEK last year); H1 2024 EPS: SEK 1.03 (vs. 0.44).

• Operating cash flow per share rose to 2.47 SEK in Q2 and 3.03 SEK for H1; total operating cash flow 60 MSEK in Q2, 72 MSEK in H1.

• Net debt reduced to SEK 329 million (from SEK 406 million), with net debt/EBITDA at 2.3x.

Outlook and guidance

• Market conditions are improving, especially in the Data Centre and Broadband segments.

• Annual targets remain: 20% growth, 8% organic growth, EBITA margin >10%, Net Debt/EBITDA 2-3x.

• Vision 2025 aims for SEK 2.6 billion in net sales and SEK 280 million EBITA.

• Focus continues on organic growth, margin improvement, and selective acquisitions.