Martela (MARAS) Q2 2024 earnings summary

Executive summary

• Revenue for January–June 2024 was €41.2 million, down 5.2% year-over-year; Q2 revenue rose 8.3% to €21.0 million compared to Q2 2023.

• Operating loss narrowed to €-3.8 million for H1 2024 from €-4.8 million a year earlier; Q2 operating loss was €-1.6 million, improved from €-2.9 million.

• Net result for H1 2024 was €-4.8 million, compared to €-5.2 million in H1 2023; EPS was €-1.04 versus €-1.13.

• Market uncertainty persisted in the Nordics, but customer demand and order backlog strengthened towards the end of Q2.

• Structural changes and strikes in Finland, Sweden, and Norway impacted Q1, with efficiency gains expected in H2.

Financial highlights

• Q2 revenue up 8.3% year-over-year, driven by 15.9% growth in Finland and 106.7% in Sweden; Norway and Other countries declined.

• H1 revenue fell 5.2% year-over-year; Finland down 0.7%, Sweden down 15.3%, Norway down 35.8%, Other countries down 5.2%.

• Cash flow from operating activities improved to €-0.3 million in H1 2024 from €-4.1 million in H1 2023.

• Gross capital expenditure was €0.2 million in H1 2024, down from €1.2 million.

• Personnel costs for H1 2024 totaled €12.1 million, with average headcount down 7.2% to 375.

Outlook and guidance

• Full-year 2024 revenue is expected to increase versus 2023, with a positive operating result anticipated.

• Market demand is expected to improve in H2 2024, though uncertainty around interest rates and investment demand remains.