Frontwalker (FRWA) Q2 2024 earnings summary

Executive summary

• Completed restructuring with sale of Tavana IT and focus on core segment Solve; new leadership in place for growth phase.

• Q2 and H1 results heavily impacted by one-time costs from divestments and continued market headwinds.

• Company expects gradual market recovery and aims for positive results in late 2024.

Financial highlights

• Q2 2024 net sales SEK 13.0m, down 48% year-over-year; H1 2024 net sales SEK 31.2m, down 44%.

• Q2 EBITA SEK -2.4m (improved from -3.9m); H1 EBITA SEK -16.0m (vs -2.7m), including SEK -11.9m one-off from Tavana IT sale.

• Q2 net result SEK -2.3m (vs -4.0m); H1 net result SEK -15.9m (vs -2.8m).

• Q2 EPS SEK -0.02 (vs -0.03); H1 EPS SEK -0.13 (vs -0.02).

• Cash flow from operations H1 SEK -5.7m (vs 1.5m); available liquidity at period end SEK 9.3m.

Outlook and guidance

• Market remains challenging with long sales cycles and price pressure, but signs of stabilization as inflation and rates ease.

• Several new projects expected to start in autumn, with positive impact anticipated in late 2024.

• Targets for 2025: net sales of SEK 154m and EBITA of SEK 11m (7% margin).