Elektroimportoren (ELIMP) Q2 2024 earnings summary

Executive summary

• Q2 revenue reached NOK 349 million, a 7.2% year-over-year increase, with like-for-like sales up 4.4% in both Norway and Sweden.

• Gross margin declined to 32.4% from 34.6%, impacted by FX, campaigns, product mix, and sector mix.

• Adjusted EBITDA rose to NOK 33 million (from NOK 31 million), while reported EBITDA was NOK 30 million (down from NOK 31 million).

• Cost control measures reduced OPEX to NOK 80 million, with opex-to-sales ratio improving to 22.8%.

• Growth was led by EV chargers and Smarthome products, while solar sales declined over 60%.

Financial highlights

• Revenue increased to NOK 349 million from NOK 326 million year-over-year.

• Gross profit held steady at NOK 113 million; gross margin at 32.4% (down from 34.6%).

• Adjusted EBITDA margin improved to 9.6% due to cost control and one-time rental contract termination.

• Cash and available credit facilities totaled NOK 205 million, with NOK 85 million in cash and NOK 120 million unused overdraft.

• Net interest-bearing debt (excl. IFRS 16) was NOK 165 million, down from NOK 327 million last year.

Outlook and guidance

• New Oslo store to open in November 2024, expected to be above average in turnover.

• Price increases implemented in Norway from July to support gross margin, but FX and freight costs remain a challenge.

• Modest improvement in Norwegian consumer confidence, but H2 2024 expected to be challenging.

• Sweden shows early signs of recovery after policy rate cuts; operational turnaround underway.

• Solar market remains challenging, with inventory reduction initiatives and focus shifting to commercial sales.