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 campaigns, product mix, and FX effects.

• Operating expenses reduced to NOK 80 million, with OpEx to sales ratio down to 22.8% from 25.2%.

• Adjusted EBITDA rose to NOK 33 million (up from NOK 31 million); reported EBITDA was NOK 30 million.

• Growth observed in EV chargers and Smarthome products, while solar sales declined over 60%.

Financial highlights

• Revenue increased to NOK 349 million from NOK 326 million, a 7.2% year-over-year rise.

• Gross margin at 32.4% (down from 34.6%); adjusted for FX, gross margin would be 33.8%.

• Adjusted EBITDA margin at 9.6% (up from 9.4%); reported EBITDA margin at 8.7%.

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

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

Outlook and guidance

• Price increases implemented in Norway across all brands from July to improve gross margin.

• New Oslo store to open in November 2024; strategic review in Sweden led to operational turnaround plan.

• Second half of 2024 expected to remain challenging, though modest improvement in Norwegian consumer confidence is noted.

• Swedish market shows early signs of recovery after policy rate cuts; store performance improving.

• Solar market remains challenging, with management working to reduce inventory risk.