Nurminen Logistics (NLG1V) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 increased 2% year-over-year to EUR 57.7 million, but Q2 net sales fell 28.8% to EUR 22.5 million due to Baltic volume declines, strikes, and customer shutdowns.

• Comparable operating profit for H1 reached a record EUR 9.8 million (17% margin), despite external disruptions; Q2 comparable operating profit was EUR 4.0 million (17.5% margin).

• Baltic operations were heavily impacted by the Red Sea crisis, shifting volumes to land routes and halving Q2 net sales in the region.

• New rail routes in Sweden launched, expected to drive future growth; non-Baltic businesses showed increasing volumes since June.

• A property sale announced in June will free up capital and improve balance sheet flexibility.

Financial highlights

• Q2 2024 net sales: EUR 22.5 million (down 28.8% year-over-year); H1 2024 net sales: EUR 57.7 million (up 2%).

• Q2 operating profit: EUR 3.4 million (down from EUR 5.6 million); H1 operating profit: EUR 9.2 million (up from EUR 8.9 million).

• Q2 comparable operating profit: EUR 4.0 million (down from EUR 5.6 million); H1 comparable operating profit: EUR 9.8 million (up from EUR 9.2 million).

• Q2 result for the period: EUR -0.3 million (down from EUR 3.6 million); H1 result: EUR 4.6 million (down from EUR 6.0 million).

• Cash flow from operating activities in H1: EUR 8.2 million (down from EUR 20.5 million year-over-year).

Outlook and guidance

• 2024 net sales and comparable operating profit are now expected to be below 2023 levels due to prolonged Baltic volume declines from the Red Sea crisis.

• Non-Baltic business volumes are forecast to increase in H2, improving relative profitability through efficiency, new services, and customer acquisition.

• Rail transport volumes expected to grow between the Nordics and Asia/Europe, supported by environmental trends and legislative targets.