Ngenic (NGENIC) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 decreased by 58% to 11.6 MSEK compared to H1 2023, reflecting continued weak market conditions and failed capital raising.

• The company entered corporate restructuring after a failed directed share issue and delayed proceeds from a business divestment.

• Organizational adjustments, including staff reductions and divestment of the IMD business, are underway to focus on core energy management operations.

• Market interest in partnerships has increased post-restructuring, and management expects the bottom was reached in Q2.

Financial highlights

• Q2 2024 net sales fell 60% year-over-year to 5.3 MSEK; total revenues dropped 61% to 5.3 MSEK.

• EBITDA for H1 2024 was -15.1 MSEK (vs. -4.8 MSEK H1 2023); operating result for Q2 was -10.5 MSEK (vs. -6.6 MSEK Q2 2023).

• Net result for H1 2024 was -21.1 MSEK (vs. -10.0 MSEK H1 2023); Q2 net result was -10.9 MSEK (vs. -6.9 MSEK Q2 2023).

• Cash flow for H1 2024 was -0.5 MSEK (vs. -7.3 MSEK H1 2023); cash at period end was 0.3 MSEK.

• Equity at period end was -3.4 MSEK (vs. 28.4 MSEK Q2 2023); equity ratio was -4.7% (vs. 39%).

Outlook and guidance

• Management expects organizational adaptation to be completed in 2024, with a foundation for profitability in 2025.

• Restructuring plan extended to November 2024; focus remains on capital raising and business refocus.

• Anticipates increased demand for energy optimization services and new product launches for energy cost optimization.