Humble Group (HUMBLE) Q2 2024 earnings summary

Executive summary

• Net sales grew 9% year-over-year in Q2 2024 to SEK 1.8 billion, with organic growth also at 9% and minimal currency impact.

• Gross and profitability margins improved in Q2 2024, with gross margin rising to 31.5% (up from 29.3%), and Adjusted EBITA up 18% to SEK 141 million.

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

• International sales rose 17% in Q2, with new product launches and US market entry.

• Capacity constraints in factories have limited growth, but investments and strategic initiatives are underway to address this.

Financial highlights

• Q2 net sales: SEK 1.8 billion (up 9%); six-month net sales: SEK 3.7 billion (up 12%); LTM net sales: SEK 7.5 billion (up 19%).

• Q2 gross profit: SEK 586 million, gross margin: 31.5% (up from 29.3%).

• Q2 Adjusted EBITDA: SEK 168 million (up 13%); Adjusted EBITA: SEK 141 million (up 18%).

• Operating cash flow before changes in net working capital: SEK 138 million; total operating cash flow after working capital changes: -SEK 49 million, mainly due to increased inventory.

• Net interest-bearing debt: SEK 1.8 billion; leverage (NIBD/Adjusted EBITDA proforma): 3.1x.

Outlook and guidance

• H2 2024 has started strong, with focus on delivering during peak August–November period and expectation of cash flow release from working capital in Q4.

• Focus remains on improving margins and optimizing the product portfolio for profitability, even if it impacts revenue.

• Continued investments in capacity and international expansion, especially in the U.S., U.K., Nordics, and Germany.

• Application for main market listing on Nasdaq Stockholm planned for Q3 2024; Capital Markets Day scheduled for September 19, 2024.

• Financial goals set 18 months ago remain valid.