NFO Drives (NFO) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 decreased 17.9% year-over-year to 11.0 MSEK, following a record Q2 2023, but exceeded Q1 2024.

• Bruttomarginal improved to 23.5% in Q2 2024, the highest in several years, driven by cost savings in new product designs.

• EBIT for Q2 2024 was -0.6 MSEK, down from -0.3 MSEK in Q2 2023, mainly due to lower sales and negative currency effects.

• Cash flow improved to -0.2 MSEK in Q2 2024 from -3.1 MSEK in Q2 2023.

• Weak demand persisted in Sweden and Germany, especially in installation and agriculture sectors.

Financial highlights

• Q2 2024 net sales: 11.0 MSEK (13.4 MSEK Q2 2023); H1 2024: 21.9 MSEK (24.6 MSEK H1 2023).

• Q2 2024 gross profit: 2.5 MSEK (2.7 MSEK Q2 2023); gross margin: 23.5% (20.3%).

• Q2 2024 EBIT: -0.6 MSEK (-0.3 MSEK Q2 2023); H1 2024 EBIT: -1.4 MSEK (-0.5 MSEK H1 2023).

• Q2 2024 net result: -0.9 MSEK (0.3 MSEK Q2 2023); H1 2024: -1.2 MSEK (0.3 MSEK H1 2023).

• Q2 2024 cash flow: -0.2 MSEK (-3.1 MSEK Q2 2023); H1 2024: -1.7 MSEK (-3.7 MSEK H1 2023).

Outlook and guidance

• Cost-saving measures implemented to address market challenges will impact Q3 2024.

• Continued investment in product development to support long-term growth.

• No financial forecast provided for the remainder of 2024 due to market uncertainty.