Creturner Group (CRET) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 declined 38% year-over-year to SEK 2.8 million, with operating result at -SEK 4.5 million and operating margin at -156%.

• Debt significantly reduced following the sale of solar parks, resulting in lower interest costs and improved equity ratio.

• Digital HPC business showed initial progress but faced hardware issues, now resolved with upgraded equipment and operations expected to restart in Q3.

• Environmental technology business saw strong interest, but expansion delayed due to funding constraints; international dialogues ongoing.

• Additional patent application filed for CO2 decomposition technology.

Financial highlights

• Net turnover Q2: SEK 2.8 million (Q2 2023: SEK 4.5 million); EBITA Q2: SEK 1.2 million (Q2 2023: SEK 3.2 million).

• Operating result Q2: -SEK 4.5 million (Q2 2023: -SEK 4.0 million); earnings per share Q2: SEK 0.02 (Q2 2023: SEK 0.13).

• Cash balance at period end: SEK 0.2 million, unchanged year-over-year.

• Result after depreciation H1: -SEK 4.4 million (H1 2023: -SEK 10.1 million).

• Company value at Q2: SEK 13.2 million; share price SEK 0.229.

Outlook and guidance

• Operations in the upgraded data center expected to commence in Q3, with a cautious approach to expansion until stable returns are demonstrated.

• Environmental technology expansion remains on hold pending improved financial conditions, though market interest is strong.

• Remaining external debt exposure anticipated to be managed during Q3.