Byggmax Group (BMAX) Q2 2024 earnings summary

Executive summary

• Achieved improved profitability in Q2 2024, with EBITA rising to SEK 184M and margin increasing to 8.8% from 7.8%, despite a 5.5% year-over-year sales decline.

• Net sales declined to SEK 2,082M, but the rate of decline slowed compared to previous quarters.

• Net debt reduced by 29% year-over-year to SEK 480M, strengthening the balance sheet.

• Opened two new stores in Q2 2024, bringing the total to 213 stores across four Nordic markets.

• Operational excellence, cost control, and investments in e-commerce and store upgrades drove efficiency and customer satisfaction.

Financial highlights

• EBITA increased to SEK 184M (from SEK 172M), with margin improving to 8.8% (from 7.8%).

• Net sales for Q2 2024 were SEK 2,082M, down 5.5% year-over-year.

• Gross margin improved to 33.6%, driven by product mix, purchasing, and supplier discounts.

• Cash flow from operations remained strong at SEK 744M (R12), supporting financial flexibility.

• Inventory reduced by 17% year-over-year, supporting cash flow and efficiency.

Outlook and guidance

• Macro environment shows signs of improvement with lower inflation, stabilizing interest rates, and improved consumer confidence.

• Anticipates a rebound in renovation projects as consumer confidence rebuilds, with the company positioned for growth.

• Updated financial targets: at least 5% annual sales growth over a business cycle, EBITA margin target of at least 7%, and net debt/EBITDA below 2.5x.

• Dividend policy to distribute 50% of net profit, subject to financial position.