Impact Coatings (IMPC) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached SEK 31.7 million, driven by system deliveries and expansion in Coating Services in China.

• Major milestones included rapid IC2000 deliveries to SEKSUN and a new order from Boyuan, strengthening the hydrogen market position.

• The company is preparing to expand capacity in China and evaluating the timing for launching a North American Coating Service Center.

• Focus remains on standardization, shorter delivery times, and expanding the sales pipeline, especially in China.

Financial highlights

• Q2 net sales: SEK 31.7 million (up from SEK 25.1 million in Q2 2023); H1 net sales: SEK 35.7 million (down from SEK 45.1 million in H1 2023).

• Gross margin in Q2 improved to 75% (from 59% in Q2 2023), with previous stability near 60%.

• Operating expenses were SEK 21 million, in line with last year after adjustments.

• Net result for the quarter was a loss of SEK 3.8 million.

• Cash and liquid assets at period end: SEK 85.7 million, with negative cash flow of SEK 34 million for H1.

Outlook and guidance

• Focus on organic growth, expanding in key markets, and converting a strong sales pipeline into orders.

• Plans to move to new premises in Linköping and increase production capacity.

• Evaluating timing for North American Coating Service Center launch due to uncertain demand.

• Strategic partnerships, alliances, and potential acquisitions are being considered.

• No capital raise is expected in the next 12 months.