Novedo (NOVEDO) Q2 2024 earnings summary

Executive summary

• Net sales grew by 11.1% year-over-year to SEK 1,455.7 million for January–June 2024, with organic growth of 0.4%.

• EBITA increased by 10.1% to SEK 150.0 million, with an EBITA margin of 10.3%.

• Profit after tax for the half-year was SEK -22.2 million, an improvement from SEK -50.0 million last year.

• The order situation remains stable across all segments, supporting continued positive development.

• Two bolt-on acquisitions were completed, strengthening the Installation & Services segment.

Financial highlights

• Q2 net sales rose 9.6% to SEK 790.8 million, with organic growth of 2.8%.

• Q2 EBITA was SEK 94.3 million (up 5.0%), with an EBITA margin of 11.9%.

• Cash flow from operating activities was SEK 36.5 million for H1 2024, down from SEK 68.6 million.

• Net debt/equity ratio increased to 3.7x from 2.4x; equity/assets ratio declined to 11.5%.

• Earnings per share for H1 was SEK -1.69, up from SEK -3.29.

Outlook and guidance

• Updated financial targets: >30% annual average net sales growth (2024–2028), >10% adjusted EBITA margin, <3.5x net debt/EBITDA.

• Convertible bond program of SEK 300–500 million planned for autumn 2024; SEK 150 million in earn-outs to be reinvested.

• IPO preparations are ongoing, to be executed when market conditions allow.