Probi (PROB) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 reached SEK 179 million, up 25% year-over-year, with EBITDA margin improving to 19% from 9% last year.

• EMEA sales grew 80%, Americas up 19%, while APAC declined 14% due to reduced cross-border sales into China.

• Organizational streamlining, new product launches, expanded partnerships, and sustainability efforts drove a robust project pipeline and positive customer engagement.

• Dividend of SEK 1.30 per share paid, totaling SEK 15 million.

Financial highlights

• Q2 net sales: SEK 179 million (SEK 143.7 million in Q2 2023); gross margin: 34.2% (32.5%).

• EBITDA: SEK 34.2 million (SEK 12.9 million); EBITDA margin: 19.1% (9.0%).

• Operating profit (EBIT): SEK 7.4 million (loss of SEK 11.0 million); EBIT margin: 4.1% (-7.6%).

• Strong operating cash flow of SEK 23 million maintained a robust cash position.

• Cash and cash equivalents: SEK 305.4 million (SEK 301.4 million in Q2 2023).

Outlook and guidance

• On track to meet full-year targets, expected to be in line with last year's results, particularly regarding EBITDA margin.

• Margin improvements from production optimizations are not expected to be visible until the end of 2024 at the earliest.

• Gradual EBITDA margin increase anticipated from 2025 onwards, targeting 25% or above by 2028.

• No major financial improvements expected for full-year 2024, but positive momentum anticipated from year-end onward.