Stockwik Förvaltning (STWK) Q2 2024 earnings summary

Executive summary

• EBITA rose 8.2% to 6.1 MSEK in Q2 2024, with net sales up 1.3% to 213.6 MSEK compared to Q2 2023, driven by organic growth in a cautious market.

• Cost-saving measures implemented are expected to reduce annual costs by 13 MSEK from year-end, exceeding the previously communicated 10 MSEK target.

• Cash flow from operations was 1.1 MSEK in Q2, down from 1.6 MSEK last year, with increased working capital due to higher activity in Health and Property Services segments.

• Net result for Q2 improved to -8.6 MSEK from -13.0 MSEK year-over-year; for H1, net result was -11.8 MSEK versus -16.5 MSEK.

Financial highlights

• Q2 2024 net sales: 213.6 MSEK (+1.3% YoY); H1 2024: 414.4 MSEK (+2.8% YoY).

• Q2 EBITDA: 16.8 MSEK (+10.4% YoY); Q2 EBITA: 6.1 MSEK (+8.2% YoY); Q2 EBIT: 4.1 MSEK (+95.7% YoY).

• Adjusted EBITA margin in Q2: 3.4% (up from 2.5%); H1 adjusted EBITA margin: 5.3% (up from 3.9%).

• Rolling 12-month net sales: 830.3 MSEK (+1.0% YoY); rolling adjusted EBITDA: 100.2 MSEK (+16.3% YoY).

• Net debt at quarter-end: 405.7 MSEK; net debt/EBITDA: 4.46x.

Outlook and guidance

• Management expects continued profit growth in autumn, supported by cost reductions and improved profitability.

• Lower interest rates and reduced acquisition-related debt are expected to enable a limited resumption of acquisitions next year.