Besqab (BESQAB) Q2 2024 earnings summary

Executive summary

• Completed merger in March 2024, now operating as a single entity with a new business plan focused on profitability and financial stability.

• First full quarter post-merger showed stable performance and increased sales activity.

• Net sales for Jan–Jun 2024 reached SEK 947.3m (727.4), with a gross profit of SEK 162.4m (150.7) and a gross margin of 17.1% (20.7).

• Operating profit was SEK 53.8m (90.0), operating margin 5.7% (12.4), and net profit SEK 20.4m (73.0).

• IFRS net sales were SEK 1,822.6m (560.8), with a negative operating margin (13.7) and net loss of SEK -54.2m (63.1).

Financial highlights

• Net sales for Q2 2024 reached 486.8 Mkr, up from 338.2 Mkr in Q2 2023.

• Gross profit was 99.7 Mkr with a gross margin of 20.5%.

• Operating income was 33.4 Mkr, operating margin 6.9%.

• Net income for the quarter was 11.1 Mkr, or 0.11 kr per share.

• Balance sheet total increased to 5.6 Bn kr, with equity at 3.5 Bn kr and liquidity of 494 Mkr.

Outlook and guidance

• Business plan targets a gross margin of 20% and operating margin of 15% over the cycle.

• Return on equity goal set at a minimum of 15% across the cycle.

• Company aims for a rolling production volume of 2,000 homes in production from 2025 onward.

• Market conditions improved with expectations of interest rate cuts, supporting a positive outlook for the rest of the year.

• Company prepared to launch new projects as market conditions improve.