Arctic Blue Beverages (ARCTIC) Q2 2024 earnings summary

Executive summary

• Revenue for Jan–Jun 2024 was SEK 2,670 thousand, down from SEK 4,291 thousand year-over-year; net loss narrowed to SEK -7,493 thousand from SEK -10,832 thousand.

• Q2 2024 sales declined 13% year-over-year, mainly due to weaker demand in Finland, travel retail, and exports.

• New product launches included Arctic Blue Long Drink and Arctic Blue Gin Cask Vintage 2023, both receiving positive market feedback and international awards.

• The company entered the RTD market and expanded distribution, especially in Finland, despite challenging economic conditions.

• Cash and cash equivalents stood at SEK 2,319 thousand as of June 30, 2024.

Financial highlights

• Jan–Jun 2024 revenue: SEK 2,670 thousand (down from SEK 4,291 thousand year-over-year).

• EBITDA for Jan–Jun 2024: SEK -6,359 thousand (improved from SEK -8,849 thousand year-over-year).

• EBIT for Jan–Jun 2024: SEK -7,219 thousand (improved from SEK -9,976 thousand year-over-year).

• Net result for Jan–Jun 2024: SEK -7,493 thousand (improved from SEK -10,832 thousand year-over-year).

• Q2 2024 revenue: SEK 1,675 thousand (down from SEK 2,022 thousand year-over-year); Q2 net result: SEK -3,525 thousand (improved from SEK -5,728 thousand year-over-year).

Outlook and guidance

• Management expects new product launches and expanded sales activities to support future growth, though market conditions remain challenging.

• The opening of Arctic Blue Distillery is expected in Q3 2024, anticipated to boost brand awareness and sales.

• Continued focus on strengthening equity and improving profitability.