Borgestad (BOR) Q2 2024 earnings summary

Executive summary

• Profit before tax reached NOK 32.7 million (MNOK 32.7) in Q2 2024, up from NOK 2.2 million (MNOK 2.2) in Q2 2023, driven by higher EBIT and operational improvements.

• EBIT margin for Höganäs Borgestad Group was 10–10.5% in Q2 and 6% year-to-date, reflecting significant margin gains.

• Strategic focus remains on operational improvement, capital efficiency, and preparing assets for potential sale or further M&A.

• Significant management changes and incentive alignment have been implemented across the group and subsidiaries.

• Increased ownership in Höganäs Borgestad Group to 69.7% during the quarter.

Financial highlights

• Q2 2024 revenue was NOK 336.7–337 million, up from NOK 316.7–317 million in Q2 2023.

• EBITDA for Q2 2024 was NOK 45–45.2 million, compared to NOK 17.6–18 million in Q2 2023.

• Net interest-bearing debt reduced to MNOK 355.4 as of 30.06.24, down from MNOK 737.7 a year earlier.

• Available liquidity at period end was MNOK 142.8–143, up from MNOK 59.4 at 30.06.23.

• Equity ratio improved to 51.5–52% at June 30, 2024, from 34% a year earlier.

Outlook and guidance

• Expectation of continued operational improvements and at least stable or better performance for Höganäs Borgestad in H2 compared to last year.

• Agora Bytom anticipated to deliver stable revenues and EBITDA in coming quarters; cost-cutting program to show full effect from 2025.

• M&A is a strategic priority, with readiness to deploy capital for new opportunities and exploring liquidity events for Agora Bytom.