Careium (CARE) Q2 2024 earnings summary

Executive summary

• Achieved solid growth and strong profitability in Q2 2024, with net sales rising 7.3% year-over-year to SEK 229.4 million and key innovation launches enhancing connectivity and service uptime.

• Focus growth markets Germany and France delivered over 180% sales growth year-over-year, driven by updated EU market strategy.

• Stable performance despite challenges from freight costs and infrastructure transition delays in the UK and Sweden.

• Operating profit (EBIT) increased 48.9% to SEK 21.8 million, with an EBIT margin of 9.5%.

• EBITDA margin improved to 16.4% from 15.4% in Q2 2023.

Financial highlights

• Net sales reached SEK 229.4 million, up 7.3% organically year-over-year; adjusted for currency, growth was 6.8%.

• Service sales increased 2.8% to SEK 163.3 million; product sales rose 20.5% to SEK 66.1 million.

• Gross margin was 41.7%, slightly down from 42.2% due to higher freight costs and product mix.

• Q2 net result: SEK 13.9 million (down 7.5%); Q2 EPS: SEK 0.54 (down 8.5%).

• Free cash flow was SEK 0.5 million, down from SEK 7.7 million, mainly due to inventory build-up.

Outlook and guidance

• Full-year guidance maintained: 12-15% organic growth with improved profitability versus 2023.

• H1 2024 delivered 8% growth and 86% EBIT increase, supporting confidence in guidance.

• Management remains committed to higher growth in H2, especially Q4.

• Priorities include maximizing value from new innovations and converting UK sales pipeline.