Kentima (KENH) Q2 2024 earnings summary

Executive summary

• Revenue and earnings declined in Q1–Q2 2024 due to weak demand in certain sectors, reduced construction, and delayed investments.

• Significant investments in product development and marketing increased costs by 1.2 MSEK, negatively impacting results.

• Two record orders post-period, including the largest ever (10.8 MSEK), are expected to drive growth in 2025.

Financial highlights

• Q2 2024 revenue: 14,296 KSEK (down 13% year-over-year); H1 2024 revenue: 28,246 KSEK (down 18%).

• Q2 EBITDA: -154 KSEK (2,305 KSEK prior year); Q2 EBIT: -1,349 KSEK (1,125 KSEK prior year).

• H1 EBITDA: 855 KSEK (4,859 KSEK prior year); H1 EBIT: -1,506 KSEK (2,505 KSEK prior year).

• Cash flow from operations H1: 1,559 KSEK (5,976 KSEK prior year); cash at period end: 2,368 KSEK (8,353 KSEK prior year).

• EPS H1: -0.08 SEK (0.06 SEK prior year); equity per share: 1.04 SEK (1.13 SEK prior year).

Outlook and guidance

• Management expects continued challenges in coming quarters due to macroeconomic headwinds.

• Significant growth and improved profitability anticipated in 2025, driven by large orders and new product launches.

• Fall 2024 will see the most intensive product launch period in company history.