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.

• Growth observed in all segments, with bike and snow leading, and increased market share and penetration for Mips' safety system.

• Over 50 million Mips-equipped helmets delivered to date.

• Inventory normalization, especially in the bike sector, supported a return to organic growth.

• Management remains confident in long-term strategy and expects continued positive development for the rest of 2024.

Financial highlights

• Q2 2024 net sales: SEK 133m (up 31% year-over-year); H1 2024 net sales: SEK 216m (up 14%).

• Q2 2024 gross profit: SEK 97m (up 37%); gross margin: 72.9% (up from 70.0%).

• Q2 2024 EBIT: SEK 52m (up 125%); EBIT margin: 38.9% (up 16.3pp).

• H1 2024 EBIT: SEK 65m (up 70%); EBIT margin: 30.3% (up 10.1pp).

• Q2 2024 operating cash flow: SEK 29m; H1 2024: SEK 20m.

Outlook and guidance

• Gradual recovery of growth expected to continue through 2024, with full market normalization anticipated in 2025.

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

• Expects continued strong performance in bike and sports categories, with further volume increases in safety expected in H2.

• Expects historical seasonal patterns to persist, with Q4 as the largest bike quarter.