Balyo (BALYO) H1 2024 earnings summary

Executive summary

• H1 2024 sales reached €13.8 million, down 7% year-over-year, with a significant increase in backlog to €17.9 million, up 73% from H1 2023.

• Direct order intake rose to 68% of total orders, up from 24% in Q2 2023, with US and APAC markets driving growth.

• Gross margin dropped to 21% from 41% in H1 2023, impacted by unfavorable product mix and inventory depreciation.

• Net loss widened to €7.4 million from €2.4 million in H1 2023, with operating loss at €7.0 million versus €1.9 million prior year.

• Cash position as of June 30, 2024 was €4.7 million, with financial visibility until end of November 2024.

Financial highlights

• H1 2024 sales: €13.79 million, down 7% year-over-year; Q2 2024 sales up 12% to €8.5 million.

• Gross profit fell 52% to €2.94 million; gross margin rate declined by 20 points to 21%.

• Operating expenses increased 25% to €9.95 million, mainly due to higher personnel costs and trade fair participation.

• Net loss for H1 2024 was €7.4 million, compared to €2.4 million in H1 2023.

• Cash position dropped to €2.4 million by September 24, 2024.

Outlook and guidance

• Financial resources expected to fund operations until end of November 2024, with uncertainty about going concern beyond that period.

• Plans to launch a €36 million capital increase with preferential subscription rights, subject to shareholder and regulatory approval.

• SoftBank intends to support the rights issue and maintain listing for at least 12 months post-transaction.