Lammhults Design Group (LAMM) Q2 2024 earnings summary

Executive summary

• Sales and earnings were weak in both Q2 and H1 2024, with net sales for H1 down 14.2% to SEK 421.1m and Q2 down 8.3% to SEK 212.0m; management expressed dissatisfaction with results.

• Gross margins improved despite lower volumes, driven by efficiency and price increases.

• Operational and organizational changes include new CFO, interim CEO, and interim sales manager appointments, with strategic initiatives underway.

• Office Interiors saw positive order intake and margin improvements, while Library Interiors faced delays and lower order intake.

• Management is targeting profitability improvements in 2025 and strategic goals for 2026.

Financial highlights

• Net sales for H1 2024 fell 14.2% year-over-year to SEK 421.1m (490.7m); Q2 2024 sales declined 8.3% to SEK 212.0m (231.3m).

• Operating result for H1 2024 was SEK -23.3m (-5.3m); Q2 operating result was SEK -13.6m (-13.7m).

• EPS for H1 2024 was SEK -2.63 (-1.40); Q2 EPS was SEK -1.45 (-1.78).

• Q2 order intake was SEK 241.1m (247.9m), down 2.8%; H1 order intake was SEK 432.5m (456.1m), down 5.3%.

• One-off items of SEK -9.0m impacted results.

Outlook and guidance

• Management is executing a plan for profitability improvement in 2025 and to reach an EBIT margin of 8–10% by 2026.

• Ongoing operational and digitalization initiatives are expected to support future growth.

• Strategic investments and cost-saving measures are being balanced in response to weak market conditions.