Largo (ALLGO) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €15.74M, up 84% year-over-year, driven by strong sales acceleration, notably with a major telecom partner.

• Operating loss narrowed to €1.70M from €3.06M in H1 2023, reflecting improved profitability.

• Net loss for the period was €1.82M, a significant improvement from €2.97M in the prior year.

• Major events included the absorption of a subsidiary and a €4M convertible bond issuance.

Financial highlights

• Total assets at June 30, 2024: €16.18M, up from €13.60M a year earlier.

• Equity declined to €1.87M from €5.67M year-over-year.

• Gross margin improved to 19.9% (from 9.3%), and margin after reconditioning costs rose to 10.8% (from -5.8%).

• Operating expenses increased to €17.93M (from €12.43M), with personnel costs at €2.08M.

• Financial result was a loss of €71.6K, improved from a €128K loss in H1 2023.

Outlook and guidance

• Q3 2024 revenue reached a record €10.6M.

• New distribution agreement signed with a major telecom operator in Poland.