OrganoClick (ORGC) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 38.7 million, down 5.6% year-over-year, with EBIT improving to SEK -0.1 million from SEK -0.4 million.

• Gross margin increased to 29.1% from 26.9% due to product mix and lower raw material prices.

• Cash flow from operating activities strengthened to SEK 11.0 million in Q2, up from SEK 8.0 million.

• For the first half of 2024, the group reported a positive operating result for the first time.

Financial highlights

• H1 2024 net sales were SEK 76.9 million, a 9.0% decrease year-over-year.

• EBIT for H1 was SEK 20 thousand, up from SEK -294 thousand in H1 2023.

• Earnings per share for H1 were SEK -0.05, compared to SEK -0.04 last year.

• Cash and cash equivalents at period end were SEK 15.7 million, with a quick ratio of 42.3%.

• Net debt/equity ratio increased to 126.2% from 94.8% year-over-year.

Outlook and guidance

• Consumer products continue to perform strongly, with expansion into the Swiss market and new distribution agreements.

• Focus remains on sales growth, margin improvement, and profitable growth, especially in Germany and other European markets.

• New product launches planned in Nonwoven & fiber technologies, with long-term expectations unchanged despite current market weakness.