Nimbus Group (BOAT) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales declined 18% year-over-year to SEK 623 million, with organic growth at -18% and EBITA/EBITDA dropping to SEK 45 million (7.2% margin), mainly due to temporary effects in Finnish operations and EdgeWater.

• The European market was weaker than expected, down 25%, while North America sales held up better despite a 20% market drop, with Nimbus brand sales flat and market share gains.

• The order book at quarter-end was SEK 508 million, a 54% decrease year-over-year, with 94% premium boats.

• First US-produced Nimbus boat delivered in July; production ramped up at EdgeWater and Finland after planned stops.

• Cost reduction initiatives and organizational restructuring were initiated to improve profitability, with no significant one-off costs expected.

Financial highlights

• Net sales for Q2: SEK 623 million, down 18% year-over-year; H1 sales down 9%.

• EBITDA/EBITA: SEK 45 million (7.2% margin) vs. SEK 83 million (11% margin) last year; H1 EBITA: SEK 31 million (down 66% YoY).

• Net working capital at SEK 548 million, down SEK 78 million from Q1, but higher year-over-year due to boats in transit to the US.

• Operating cash flow in Q2 was SEK 79 million, down from SEK 95 million last year.

• Earnings per share H1: SEK 1.10 (vs. 2.95); available cash and equivalents at period end: SEK 77 million.

Outlook and guidance

• Financial targets unchanged: >10% growth over a business cycle, 10% midterm EBITDA margin, no senior debt, and 30% dividend payout.

• EdgeWater production resumed and expected to contribute positively from Q3 onward.

• Order intake is showing early signs of recovery at own dealers, with the Nordic market potentially bottoming out.

• Q3 is typically the second biggest quarter; significant activity expected, especially with the official launch of the 495 at the Cannes Boat Show.

• Cost reduction program and new business area structure expected to yield positive effects starting autumn 2024.