Byggma (BMA) Q2 2024 earnings summary

Executive summary

• Leading Nordic supplier of building product solutions with #1 market position in boards and beams and growing international presence.

• Operates 7 manufacturing facilities, distributes to all major building material chains, and employs around 690 people.

• Despite the weakest construction market in decades, maintained profitability through product innovation and operational efficiency.

• Continues to invest in digitalization, automation, sustainability, and new product launches for international expansion.

• Byggma and its sister company now control over 26.8% of Norske Skog ASA, aiming for long-term synergies.

Financial highlights

• Q2 2024 sales revenue was NOK 548.3m, up 0.7% YoY; H1 2024 revenue NOK 1,090m, down 7.7% from H1 2023.

• Q2 2024 EBITDA at NOK 44m (vs NOK 75m Q2 2023); adjusted operating profit Q2 2024 NOK 22m (vs NOK 53m Q2 2023).

• Adjusted operating profit margin fell to 4.0% in Q2 2024 from 9.7% in Q2 2023.

• Net financials negative at NOK -21m in Q2 2024; H1 2024 net result was a loss of NOK 47.4m (vs NOK 62.7m loss H1 2023).

• Strong cash conversion history, with YTD 2024 operating cash flow at NOK 76.5m.

Outlook and guidance

• Market activity remains low, especially in new housing, but demand for new product launches is increasing.

• Identified growth avenues include product innovation, efficiency, M&A, and international sales; large potential for further consolidation in the Nordic market.

• Dividend policy targets 30-50% of net profit; high cash conversion supports future payouts.

• Investments will continue in digitalization, automation, and sustainability initiatives.

• Underlying housing demand in Norway is building up, potentially leading to a future market rebound.