Koskisen (KOSKI) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose to €77.8 million (up 5.3% year-over-year), but profitability declined due to high wood raw material costs and lower delivery volumes in key segments.

• Adjusted EBITDA for H1 2024 was €14.9 million (down 43.5% year-over-year); Q2 adjusted EBITDA was €9.3 million (down 31.8%).

• Net profit for H1 2024 was €7.2 million, a 61.4% decrease year-over-year; basic EPS was €0.31 (vs. €0.81 prior year).

• Market conditions remained challenging, especially in construction, but demand for birch plywood and automotive solutions was resilient.

• Profitability remained satisfactory despite high wood raw material prices negatively impacting results.

Financial highlights

• Q2 2024 operating profit (EBIT) was €6.9 million, down 41.1% year-over-year; H1 EBIT was €10.0 million, down 55.1%.

• Q2 2024 profit for the period was €4.9 million (down 49.8% year-over-year).

• Basic EPS for H1 2024 was €0.31, compared to €0.81 in H1 2023.

• Equity ratio at end of period was 53.3%, with gearing at 8.8%.

• Net cash flow from operating activities for H1 2024 was €8.6 million.

Outlook and guidance

• 2024 revenue expected to grow from 2023 levels; adjusted EBITDA margin guidance remains at 8–12%.

• Strategic priorities and financial targets for 2024–2027 remain unchanged.

• Wood raw material outlook stable for Q3, with reserves at good levels.