Skako (SKAKO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 4.3% year-over-year to DKK 64.3m, driven by Minerals (+10.6%) and Recycling (+4.2%), while Fasteners stabilized (+0.1%).

• EBIT before special items declined 6.7% to DKK 5.6m due to a higher share of lower-margin plant sales.

• Gross profit margin fell 2.5pp to 27.9% as production costs rose 8.1% year-over-year.

• Profit after tax was DKK 3.4m, down from DKK 3.8m in Q2 2023.

• ROIC surged to 42.2% from 17.5% year-over-year, positively impacted by the divestment of Concrete activities.

Financial highlights

• H1 2024 revenue was DKK 123.3m, nearly flat year-over-year (-0.1%).

• EBIT before special items for H1 was DKK 10.1m (-3.9% year-over-year).

• Order backlog at quarter-end was DKK 60.2m, down 21.8% from Q2 2023.

• Net debt decreased to DKK 28.2m (from DKK 46.0m in Q2 2023); net debt to EBITDA improved to 0.7.

• Cash flow from operating activities (CFFO) was negative DKK 3.6m, mainly due to increased net working capital.

Outlook and guidance

• 2024 revenue expected to grow organically by 2–5%; EBIT before special items forecast at DKK 24–28m.

• Largest-ever order (>DKK 150m) for phosphate mining plants in Morocco to be delivered over two years, with limited 2024 impact.

• Outlook assumes no material negative events in the global economy or SKAKO's markets in H2 2024.