Ferroamp (FERRO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached 47,964 KSEK, down 67% year-over-year but up 44% sequentially from Q1 2024, reflecting a weak solar market and high inventory levels at distributors.

• Battery sales increased 29% year-over-year, offsetting some of the decline in solar-related product sales.

• Cost-saving measures implemented in autumn 2023 reduced quarterly costs by 15 MSEK compared to Q2 2023.

• A directed share issue raised 39 MSEK gross, strengthening the balance sheet.

Financial highlights

• Net sales: 47,964 KSEK (143,210 KSEK Q2 2023); total revenues: 58,512 KSEK (161,379 KSEK Q2 2023).

• EBITDA: -21,330 KSEK (-3,841 KSEK Q2 2023); EBITDA margin: -44% (-3%).

• EBIT: -24,881 KSEK (-7,854 KSEK Q2 2023); EBIT margin: -52% (-5%).

• Earnings per share: -0.78 SEK (-0.34 SEK Q2 2023).

• Cash flow from operations: -16,129 KSEK (-2,351 KSEK Q2 2023).

• Cash and cash equivalents at period end: 27,676 KSEK (257,504 KSEK Q2 2023).

• Equity ratio: 59% (72% Q2 2023).

Outlook and guidance

• Market recovery is slower than previously anticipated due to weak solar demand, high interest rates, and low energy prices.

• Management has adopted a more conservative view on the pace of market recovery and is evaluating additional financing options.

• Long-term prospects remain positive, with expected growth in the solar and battery markets.