Humble Group (HUMBLE) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 reached SEK 1.86 billion, up 9% year-over-year, with organic growth also at 9% and minimal acquisition or currency impact.

• Gross profit for Q2 was SEK 586 million, gross margin improved to 31.5% (up from 29.3%), and Adjusted EBITA increased 18% to SEK 141 million.

• Profitability initiatives and international expansion drove results, with international sales up 17% and new product launches, including US market entry.

• Strategic investments in production capacity and inventory were made to support future growth, especially for H2 2024 and 2025.

• Profit after tax reached SEK 32 million, up from break-even last year; EPS was SEK 0.07.

Financial highlights

• First six months net sales reached SEK 3.7 billion, up 12% year-over-year; LTM net sales at SEK 7.5 billion, up 19%.

• LTM gross profit rose 22% to SEK 2.3 billion.

• Adjusted EBITDA for Q2 was SEK 168 million, up 13% year-over-year; Adjusted EBITDA LTM reached SEK 659 million.

• Operating cash flow before changes in net working capital was SEK 138 million in Q2; total operating cash flow after working capital changes was -SEK 49 million.

• Six-month Adjusted EBITA was SEK 268 million, up 20% year-over-year.

Outlook and guidance

• Margin improvement and capacity development projects are ongoing, with further gains expected as projects complete in H2 2024.

• Strong start to Q3 2024, with focus on delivering during peak August–November period.

• Application for main market listing on Nasdaq Stockholm planned for Q3/Q4 2024.

• Financial goals set 18 months ago remain valid.

• Expectation of cash flow release from working capital in Q4.