Clemondo Group (CLEM) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 66.8 MSEK, down 9% year-over-year, with declines concentrated in the Vehicle segment, while Hygiene and Industry segments grew despite a weak economy.

• EBITDA was 5.5 MSEK (8.2% margin), EBIT 1.8 MSEK (2.7% margin), and net income 0.9 MSEK; cost control and efficiency measures improved gross margin to 38.5%.

• Financial position strengthened, with equity ratio at 62.3% and net debt reduced to 16.8 MSEK.

• Renewed a key contract with Lyreco Sverige worth 16–20 MSEK over two years.

Financial highlights

• Net sales Q2 2024: 66.8 MSEK (73.5 MSEK Q2 2023); H1 2024: 134.1 MSEK (152.2 MSEK H1 2023).

• EBITDA Q2 2024: 5.5 MSEK (7.9 MSEK); EBIT: 1.8 MSEK (4.0 MSEK); net income: 0.9 MSEK (1.8 MSEK).

• Gross margin improved to 38.5% (36.9% Q2 2023).

• Cash flow from operations after working capital changes: 5.1 MSEK (2.5 MSEK).

• Equity ratio: 62.3% (52.5%); net debt: 16.8 MSEK (51.2 MSEK Q2 2023).

Outlook and guidance

• Management expects gradual improvement, with cost and efficiency measures showing effect and two of three segments growing.

• Continued optimism for Hygiene and Industry, with Vehicle segment showing early signs of stabilization.