Nexam Chemical (NEXAM) Q2 2024 earnings summary

Executive summary

• Achieved highest quarterly EBITDA in company history and positive cash flow for Q2 2024, with sales up 29% year-over-year to SEK 53.6 million.

• Profitability improved due to cost-saving programs, increased in-house production, and more cost-effective products.

• Delivery reliability and product quality remained strong despite supply chain disruptions.

Financial highlights

• Net sales for Q2 2024 were SEK 53.6 million, up from SEK 41.6 million in Q2 2023; gross margin rose to 46% from 43%.

• EBITDA reached SEK 2.6 million, a turnaround from SEK -8.3 million in Q2 2023.

• Cash flow from operations was SEK 4.5 million, compared to SEK -6.6 million in Q2 2023.

• Earnings per share improved to SEK -0.03 from SEK -0.12 year-over-year.

• Cash and cash equivalents at quarter-end were SEK 11.0 million, with an unused SEK 20 million credit facility.

Outlook and guidance

• Management expects to maintain at least a 46% coverage ratio throughout 2024.

• Anticipates seasonally weaker Q3 but expresses confidence in continued positive development and future sales growth.