Ecoclime Group (ECC) Q2 2024 earnings summary

Executive summary

• Net sales decreased by 6.1% to SEK 62.4m in Q2 2024 compared to Q2 2023; adjusted for divested businesses, the decrease was 3.9%.

• EBIT fell to SEK -1.7m from SEK -22k in Q2 2023; EPS dropped to SEK -0.63 from SEK -0.41.

• Cash flow from operating activities improved to SEK -1.8m from SEK -8.5m in Q2 2023.

• Sale of Miljöbelysning Sweden AB finalized, reported separately under IFRS 5 from April 2024.

• Solidarity ratio increased to 73% from 67% year-over-year.

Financial highlights

• H1 2024 net sales declined by 17.1% to SEK 117.4m; adjusted for divestments, down 1.4%.

• EBIT for H1 2024 was SEK -9.8m, down from SEK -8.1m in H1 2023.

• EPS for H1 2024 was SEK -0.82, compared to SEK -0.59 in H1 2023.

• Cash flow from operations for H1 2024 was SEK -6.8m, down from SEK -3.8m.

• Equity per share at period end was SEK 4.28, down from SEK 5.14.

Outlook and guidance

• Core Evertherm business continues to secure new contracts, expected to impact H2 2024.

• Market conditions for geoenergy and indoor climate remain challenging, but outlook is brighter for autumn.

• Focus remains on profitability, with improved product margins and cash flow.

• Sale of Miljöbelysning strengthens financial position and supports growth in core areas.