Q-Interline (QINTER) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 decreased by 3.4% year-over-year to DKK 17.4 million, mainly due to lower distributor sales, especially in Benelux, despite strong project wins in new food sectors and geographies.

• Significant orders included a major deal with the world's third-largest dairy company and the first sale to the largest Saudi dairy group, expanding into Egypt.

• Q-Interline established a US subsidiary, hiring key staff to target the large American dairy market, with early signs of faster sales cycles.

• Recurring revenue (ARR) from support licenses and consumables grew 12.3% year-over-year, now representing 38.7% of total revenue.

• The company is expanding into new markets, now selling in 44 countries, with Egypt as the latest addition.

Financial highlights

• H1 2024 revenue: DKK 17.4 million, down 3.4% from H1 2023.

• EBITDA: DKK -6.85 million (margin -39.5%), EBIT: DKK -7.39 million (margin -42.5%), both lower than H1 2023.

• Net result: DKK -7.85 million, EPS: DKK -0.47 (diluted -0.44), compared to DKK -0.24 in H1 2023.

• Gross margin declined to 63.4% from 66.0% due to product mix changes.

• Market capitalization increased 15.8% year-to-date to DKK 127.7 million.

Outlook and guidance

• Pipeline grew over 17% since end-2023, supporting expectations for significant revenue growth in H2 2024.

• 2024 revenue guidance maintained at DKK 40–45 million; EBIT guidance remains at DKK -5.2 to -8.5 million.

• Growth expected to be driven by core markets (Scandinavia, Germany, France); US and distributor sales remain uncertain.