Strax (STRAX) Q2 2024 earnings summary

Executive summary

• Sales for January–June 2024 were MEUR 6.5, down 61% year-over-year, with a gross margin of -64.0% due to inventory write-offs and sales-related expenses.

• Result for the period was MEUR -2.7, with EBITDA from remaining operations at MEUR -2.4, both impacted by non-recurring costs.

• The company completed major asset divestments, notably US assets to Matter Brands, reducing interest-bearing debt but still faces severe liquidity and operational challenges.

• STRAX is not in compliance with loan covenants and is working with lenders on a recovery plan.

Financial highlights

• Net sales for H1 2024: MEUR 6.5 (H1 2023: MEUR 16.6); Q2 sales down 74% year-over-year.

• Gross profit for H1 2024: MEUR -4.2 (H1 2023: MEUR 6.0); gross margin -64.0% (H1 2023: 36.1%).

• Operating profit for H1 2024: MEUR -2.5 (H1 2023: MEUR -4.3); EBITDA from continuing operations: MEUR -2.4 (H1 2023: MEUR -3.8).

• Equity as of June 30, 2024: MEUR -76.1 (June 30, 2023: MEUR -12.2); equity/assets ratio: -1,610.5%.

• Cash and cash equivalents at period end: KEUR 88 (June 30, 2023: KEUR 1,092).

Outlook and guidance

• Focus remains on survival through restructuring, cost reduction, and improving short-term liquidity.

• Post-restructuring, the company aims to rebuild around mobile accessories and personal audio, leveraging remaining brands and health tech opportunities.