Godsinlösen Nordic (GIAB) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 decreased by 0.6% to 32.8 MSEK compared to Q2 2023, while EBIT improved to -3.5 MSEK from -5.6 MSEK, and net result after tax was -3.7 MSEK versus -5.5 MSEK.

• Ongoing restructuring and cost-saving programs are expected to yield annual savings of 10-12 MSEK from January 2025, with staff reduced from 80 to 55 since spring 2023.

• The company is shifting focus to e-commerce, closing its Staffanstorp store and relocating to smaller, modern premises in Malmö.

Financial highlights

• Q2 2024 revenue: 32.8 (33.0) MSEK, down 0.6% year-over-year; H1 2024 revenue: 66.3 (64.7) MSEK, up 2.4%.

• Q2 EBIT: -3.5 (-5.6) MSEK; net result after tax: -3.7 (-5.5) MSEK; EPS: -0.24 (-0.35) SEK.

• Cash flow for Q2: +0.4 (-0.5) MSEK; cash and equivalents at period end: 3.2 (4.6) MSEK.

• Solidarity at -24.2% (2.9%) at quarter end; out of 10 MSEK credit facility, 6.9 MSEK utilized.

Outlook and guidance

• Targeting 15% average annual organic revenue growth and EBITDA margin above 10% within 24 months.

• Full effect of cost savings expected from January 2025; further working capital financing may be needed in 2024.