New Nordic Healthbrands (NNH) Q2 2024 earnings summary

Executive summary

• Net sales increased by 8.4% in Q2 2024 to SEK 140.9 million and by 5.8% for H1 2024 to SEK 271.1 million year-over-year.

• Growth was driven by strong performance in Europe, North America, and Rest of the World, while the Nordics saw a decline.

• Gross margin declined slightly to 65.4% in Q2 and 64.4% for H1 2024 due to product mix changes.

• Operating profit improved in Q2 but remained negative; H1 operating profit worsened to -5.7 MSEK.

• Net result after tax for H1 2024 was SEK -7.9 million, with EPS at SEK -1.27.

Financial highlights

• Q2 net sales: SEK 140.9 million (+8.4% YoY); H1 net sales: SEK 271.1 million (+5.8% YoY).

• Q2 gross profit: SEK 92.1 million; H1 gross profit: SEK 174.7 million.

• Q2 EBITDA: SEK -1.4 million (improved YoY); H1 EBITDA: SEK -4.7 million (down YoY).

• Q2 operating profit: SEK -1.9 million; H1 operating profit: SEK -5.7 million.

• Q2 profit after tax: SEK -4.5 million; H1 profit after tax: SEK -7.9 million.

• Cash flow from current operations: SEK -42 thousand in Q2; SEK -15.8 million in H1.

Outlook and guidance

• Management expects profitability to improve in Denmark and Sweden in H2 2024.

• Anticipates continued growth in the US, other European markets, and Asia.

• Investments in Switzerland, Spain, and Australia are expected to yield positive results in 2–3 years.

• Gross profit is expected to benefit from renegotiated supplier agreements and price increases in H2.