Candles Scandinavia (CANDLE) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 2024/25 was SEK 66.1m, down from SEK 73.1m year-over-year; H1 revenue was SEK 90.7m, down from SEK 103.1m.

• Q2 EBITDA was SEK 11.0m (SEK 11.8m last year); EBIT improved to SEK 10.4m (SEK 6.6m last year).

• H1 EBITDA dropped to SEK 2.8m (SEK 10.2m); EBIT was SEK 1.6m (SEK 4.4m); net result for H1 was SEK -0.5m (SEK 3.5m).

• Despite a weak market, the company gained market share and expects to meet full-year targets.

• Major investments in automation led to initial disruptions but are now driving lower costs and higher capacity.

Financial highlights

• Q2 net income was SEK 7.7m (SEK 5.2m last year); EPS SEK 0.89 (SEK 0.62).

• H1 net income was SEK -0.5m (SEK 3.5m); EPS SEK -0.06 (SEK 0.41).

• Q2 EBITDA margin was 18% (16%); EBIT margin 17% (9%).

• H1 EBITDA margin was 3% (10%); EBIT margin 2% (4%).

• Cash liquidity at 140% (494% last year); equity ratio at 61% (77%).

Outlook and guidance

• Production issues from automation are largely resolved, with improved output and cost efficiency expected to continue.

• Management is confident in catching up on delayed orders and achieving full-year goals.

• Market remains weak, but the company anticipates continued market share gains and long-term growth.