Mips (MIPS) Q2 2024 earnings summary

Executive summary

• Achieved 31% organic growth in Q2 2024, with year-to-date organic growth at 14%, reflecting strong performance across all categories and regions.

• Over 50 million Mips-equipped helmet units delivered to date.

• Continued high interest in Mips' safety system, with increasing market share and penetration.

• All regions and categories contributed to growth, with the bike sub-category showing sustained positive trends since Q4 2023.

• Maintains confidence in long-term strategy and financial targets, expecting gradual recovery of growth in 2024.

Financial highlights

• Q2 net sales rose to SEK 133m (up 31% year-over-year); gross profit increased 37% to SEK 97m; gross margin at 72.9% (up from 70.0%).

• EBIT surged 125% to SEK 52m, with EBIT margin up to 38.9% (up 16.3pp year-over-year).

• Operating cash flow for Q2 was SEK 29m; cash and equivalents at SEK 266m after SEK 159m dividend payout.

• For the first six months, net sales up 14% to SEK 216m, gross profit up 16%, and EBIT up 70% to SEK 65m.

• Q2 2024 diluted EPS: SEK 1.53 (up 101%); H1 2024 diluted EPS: SEK 1.96 (up 50%).

Outlook and guidance

• No change to previous assumption of gradual recovery in 2024; long-term strategy and financial targets reaffirmed.

• Expect continued growth in bike and safety categories, with volumes in safety anticipated to pick up in Q3 and Q4.

• Market normalization expected in 2025, with stronger consumer demand and further rollout of new models.

• Sales growth for 2024 is expected to be driven by normalized inventory levels and new helmet model launches.

• Management remains confident in the long-term strategy and expects continued positive development for the rest of the year.