STENOCARE (STENO) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 were DKK 1.9m, down 24% year-over-year, reflecting lower product prices and increased competition in Denmark.

• Financial health improved with debt reduced from DKK 6.0m to DKK 2.8m via warrant exercise, share issue, and refinancing.

• New product launches included a balanced oil in Denmark and the Astrum brand, with first sales in Australia expected in H2 2024.

• Expansion into Canada and recognition as a leading European cannabis company marked significant strategic milestones.

• Updated 2024 sales guidance lowered to DKK 6–8m, a 7% increase over 2023 but below previous expectations; break-even in Q4 2024 is no longer anticipated.

Financial highlights

• Gross sales for H1 2024 were DKK 2.14m, down from DKK 2.81m year-over-year; Q2 2024 gross sales were DKK 0.79m.

• EBITDA for Q2 2024 was DKK -2.75m, compared to DKK -2.60m in Q2 2023; H1 2024 EBITDA was DKK -5.22m.

• Net result for H1 2024 was DKK -7.45m, compared to DKK -8.24m in H1 2023.

• Cash flow for Q2 2024 was DKK -2.47m; post-period, cash position improved to DKK 2.0m after warrant exercise and loan refinancing.

• Total assets at June 30, 2024, were DKK 26.8m, with equity of DKK 18.4m and liabilities of DKK 8.4m.

Outlook and guidance

• 2024 gross sales guidance revised to DKK 6–8m, reflecting a 7% increase over 2023 but below prior forecast.

• Break-even for Q4 2024 is no longer expected due to lower sales outlook.

• Anticipates increased sales in H2 2024 compared to H1, with new product launches in Australia and Germany.