iZafe Group (IZAFE-B) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 168 thousand, down from SEK 403 thousand, mainly due to quality adjustments and delayed invoicing; Dosell and Pilloxa sales comprised all revenue.

• Operating result (EBIT) improved to SEK -4,011 thousand from SEK -5,097 thousand year-over-year; EBITDA was SEK -3,027 thousand versus SEK -3,135 thousand.

• Significant events included a directed share issue raising SEK 5 million and a new contract for 150-190 Dosell units in Kristianstad Municipality valued at SEK 3.7-4.3 million over four years.

• After the quarter, a confirmed order for 500 Dosell units for Spain was received, and a SEK 5.5 million loan agreement was secured to replace a planned warrant exercise.

• CEO highlighted accelerated demand, expansion in Sweden, Spain, and the Netherlands, and the launch of Dosell 3.0, with a focus on achieving cash flow positivity.

Financial highlights

• Q2 2024 net sales: SEK 168 thousand (Q2 2023: SEK 403 thousand); H1 2024 net sales: SEK 3,578 thousand (H1 2023: SEK 631 thousand).

• EBIT for Q2 2024: SEK -4,011 thousand (Q2 2023: SEK -5,097 thousand); H1 2024: SEK -9,580 thousand (H1 2023: SEK -10,148 thousand).

• EBITDA for Q2 2024: SEK -3,027 thousand (Q2 2023: SEK -3,135 thousand); H1 2024: SEK -7,615 thousand (H1 2023: SEK -6,104 thousand).

• Earnings per share for Q2 2024: SEK -0.02 (Q2 2023: SEK -0.02); equity per share at period end: SEK 0.1 (Q2 2023: SEK 0.2).

• Cash and cash equivalents at period end: SEK 1,217 thousand (Dec 31, 2023: SEK 5,834 thousand).

Outlook and guidance

• Revenue from the Spanish Dosell order will be recognized in Q3/Q4 2024; first active units in Spain expected in Q4.

• Implementation of Dosell in 25 Swedish municipalities planned for the coming quarter; expansion in Norway and Finland expected in the fall.

• Focus on scaling production, strengthening recurring revenue, and achieving cash flow positivity as soon as possible.