Northbaze Group (NBZ) Q2 2024 earnings summary

Executive summary

• Achieved record sales in Q2 2024, with several subsidiaries meeting growth and profitability targets aligned with long-term goals.

• Strategic focus on long-term profitability, especially in Lowwi, with reduced operating and marketing costs.

• Copter and Adiantes delivered strong sales growth, with Copter up 35% and Adiantes up nearly 30% year-over-year.

• Improved operational efficiency through ongoing logistics and administrative integration.

Financial highlights

• Net sales for Q2 2024 reached 37,269 TSEK, up from 31,890 TSEK in Q2 2023.

• EBITDA for Q2 2024 was 5,344 TSEK, compared to 5,737 TSEK in Q2 2023 (2023 was impacted by a 9,965 TSEK earn-out for Copter AB).

• EBIT improved to 1,114 TSEK from -7,153 TSEK year-over-year.

• Cash flow from operations improved to 12,137 TSEK from 6,593 TSEK in Q2 2023, mainly due to increased sales and profitability in Adiantes.

• Gross margin declined to 44% from 51% year-over-year, mainly due to Lowwi's lower margin share.

Outlook and guidance

• Anticipates several interest rate cuts and improved market stability in the coming year.

• Continues to pursue acquisitions to strengthen the group and build long-term value.

• No detailed ongoing forecasts; operations are managed toward long-term financial targets: 20% annual growth, at least 10% EBITDA margin, and equity ratio above 30%.