Kakel Max (KAKEL) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 40.3 million, down from SEK 43.2 million in Q2 2023; H1 2024 sales totaled SEK 75 million, an 11% decrease year-over-year.

• Net result after tax for Q2 was SEK -0.5 million (Q2 2023: SEK -0.16 million); H1 2024 net result was SEK -0.39 million (H1 2023: SEK 1.52 million).

• Extraordinary costs from the closure of the Sollentuna unit impacted results; these costs are not yet fully determined.

• Weak construction market and reduced import volumes (-20.9% Jan–May 2024 vs. 2023) continue to affect demand.

• Organizational review underway and a new store in Täby is being established, expected to open September 2024.

Financial highlights

• Q2 2024 operating result: SEK -0.25 million (Q2 2023: SEK 0.05 million); operating margin -0.6% (0.1%).

• H1 2024 operating result: SEK 0.1 million (H1 2023: SEK 2.33 million); operating margin 0.1% (2.8%).

• Q2 2024 EPS: SEK -0.16 (Q2 2023: SEK -0.05); H1 2024 EPS: SEK -0.13 (H1 2023: SEK 1.10).

• Cash flow from operations in H1 2024 was SEK 3.8 million (H1 2023: SEK 6.5 million).

• Net debt at period end: SEK 7.0 million (Q2 2023: SEK 7.4 million); net debt excluding leasing: SEK -3.0 million.

Outlook and guidance

• Continued weak construction market expected; company is reviewing organization and activities to adapt.

• New Täby store investment anticipated to yield returns once operational from September 2024.

• Ongoing evaluation of strategic investments and potential acquisitions for growth.