Norva24 Group (NORVA) Q2 2024 earnings summary

Executive summary

• Achieved 17.3% revenue growth in Q2 2024, with 9.2% currency-adjusted organic growth and significant margin improvement, supported by acquisitions across Scandinavian markets.

• Five acquisitions since the start of the year added up to NOK 380 million in annual revenue, with a strong M&A pipeline and continued market leadership in Northern Europe.

• Margin improvement of 2.2 percentage points in Q2, with adjusted EBITA margin reaching 12.6%.

• Scandinavian operations delivered significant margin improvements, while Germany was impacted by one underperforming unit.

• Net operating cash flow for Q2 was NOK 110 million, down from NOK 133 million last year due to increased working capital needs.

Financial highlights

• Q2 2024 total operating revenue reached NOK 938 million, up 17.3% year-over-year.

• Adjusted EBITA was NOK 117.9 million, with a margin of 12.6%, up 2.2 percentage points from last year.

• Profit before tax for Q2 was NOK 79.4 million, up 2.1% year-over-year.

• EBITDA for Q2 was NOK 201.8 million, up 33.9% compared to the same quarter last year.

• Net financial costs increased due to higher interest expenses and currency effects.

Outlook and guidance

• On track to reach the 2025 revenue target of NOK 4.5 billion and mid-term EBITA margin of 14%-15%.

• Continued focus on organic growth, acquisitions, and operational improvements, with corrective actions in underperforming units.

• No annual dividends expected in the medium term as cash flows are reinvested into growth and acquisitions.