Idun Industrier (IDUN) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was SEK 577.2m, nearly flat year-over-year, with organic growth at -0.4%. EBITA returned to positive organic growth at 3.2%.

• EPS strengthened by 3.4% to SEK 4.0 in Q2, and cash flow from operations improved, reducing net debt to just under 2.3x EBITDA.

• The group managed weaker macro and demand conditions satisfactorily, with stable profitability and improved margins.

• Leadership transition announced: Henrik Mella to become CEO from September 1, 2024, with Karl-Emil Engström moving to Vice CEO and business development.

Financial highlights

• Q2 2024 revenue: SEK 577.2m (-0.4% y/y); H1 2024 revenue: SEK 1,126.2m (+9.2% y/y).

• Q2 2024 EBITA: SEK 91.1m (+2.3% y/y); H1 2024 EBITA: SEK 164.6m (+9.5% y/y).

• Q2 2024 gross margin: 60.8% (up from 59.4%); EBITA margin: 15.8% (up from 15.4%).

• Q2 2024 EPS (adjusted for goodwill): SEK 4.0 (up from 3.9); H1 2024: SEK 6.6 (up from 6.0).

• Q2 2024 operating cash flow: SEK 54.1m (up from 52.3m); H1 2024: SEK 129.9m (up from 110.5m).

Outlook and guidance

• The group is well-positioned for further investments in new and existing high-quality companies, with strong liquidity and a stable balance sheet.

• Management expects continued focus on acquisitions and organic development, while monitoring macroeconomic and political risks.