I-Tech (ITECH) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales and profit, with Q2 2024 net sales reaching SEK 43 million and a 24% EBIT margin, driven by strong growth in Japan and Korea and expanding customer base.

• Selektope technology is now used on over 2,500 ships and in more than 30 products, with more than 20 metric tons delivered since inception.

• Leadership changes include Magnus Henell as acting CEO, Markus Jönsson announced as incoming CEO for September, and Philip Chaabane as Chairman.

• Facing a critical EU regulatory renewal process for Selektope, with public consultation and socioeconomic analysis underway to support continued approval.

Financial highlights

• Q2 2024 net sales: SEK 42.6–43 million (Q2 2023: SEK 32.7–33 million), up 30% year-over-year; net profit for Q2: SEK 8.7–9 million (Q2 2023: SEK 7 million); operating profit: SEK 10.2 million.

• EBITDA: SEK 12.2 million (Q2 2023: SEK 9.4 million); gross margin stable at 53% year-over-year.

• Operating cash flow for Q2: SEK 3.9 million; cash balance at period end: SEK 83.8 million.

• Dividend of SEK 1.5 per share paid, totaling SEK 17.9 million.

• Japanese sales grew 96% in H1 2024 versus H1 2023; CMP sales up 35% year-over-year.

Outlook and guidance

• Continued growth expected, supported by regulatory trends, new product launches, and operational improvements aimed at increasing gross margin.

• Regulatory costs are expected to remain at current levels for the remainder of the year.

• Strategic search for new business opportunities has intensified, with a new business developer hired and a new CEO joining in September.

• The company is preparing for a public consultation regarding Selektope's EU re-registration, aiming to secure continued approval in Europe.