Green Landscaping Group (GREEN) Q2 2024 earnings summary

Executive summary

• Net sales grew 11% year-over-year in Q2 2024 to SEK 1,657 million, with 5% organic growth and strong profit margins despite weaker cash flow due to invoicing timing.

• EBITA increased 4% in Q2 to SEK 143 million, with a margin of 8.7%, slightly down from 9.2% last year.

• Surpassed SEK 6 billion in rolling 12-month revenue, marking a significant milestone.

• Four new companies acquired in Germany and Norway, expanding the group’s European footprint.

• Share buybacks totaled SEK 20 million in Q2, with SEK 53 million repurchased in H1 2024.

Financial highlights

• Q2 2024 net sales: SEK 1,657 million (up 11%); EBITA: SEK 143 million (up 4%); EBITA margin: 8.7% (down from 9.2%).

• Rolling twelve months: net sales up 9% to SEK 6,125 million; EBITA up 9% to SEK 522 million; EBITA margin 8.5%.

• Cash flow from operating activities in Q2: SEK -11 million, mainly due to working capital and timing of payments.

• Order backlog at SEK 7,985 million, stable year-over-year.

• Net debt to EBITA at 2.7, temporarily above target but within covenant limits.

Outlook and guidance

• Management expects continued stable performance, with growth and profitability targets being consistently exceeded.

• Expects Swedish segment profit margins to improve in Q4 as a loss-making contract expires.

• Anticipates continued strong performance in Rest of Europe, with margins above the 8% group target for the near term.

• Positive cash flow impact expected in Q3 as delayed Q2 invoices are recouped.

• Increased tendering activity in Sweden for projects towards year-end and 2025.