Svedbergs Group (SVED) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 increased by 23.4% to SEK 562.4 million, mainly driven by Thebalux acquisition and strong Roper Rhodes performance, despite weak Nordic markets and negative organic growth.

• Gross margin improved to 45.0% in Q2 2024, with EBITA up to SEK 76 million (13.5% margin), reflecting cost control and price adjustments.

• Free cash flow in Q2 reached SEK 112 million, supported by improved working capital and customer payments.

• Thebalux contributed SEK 106.7 million in Q2 sales and a 26.2% EBITA margin; Roper Rhodes continued to gain UK market share.

• Continued focus on sustainability, operational excellence, and readiness for market recovery.

Financial highlights

• Q2 2024 net sales: SEK 562.4 million (up 23.4% vs. Q2 2023); YTD net sales: SEK 1,134 million (up 22%).

• Q2 EBITA: SEK 76 million (13.5% margin); YTD EBITA: SEK 159 million (14.1% margin).

• Q2 free cash flow: SEK 112 million; YTD: SEK 53 million.

• Q2 gross margin: 45.0% (vs. 46.0% in Q2 2023); Q2 EPS: SEK 0.76 (0.88).

• Net debt to EBITDA at 2.3x, unchanged year-over-year, including earn-outs.

Outlook and guidance

• Plans to launch new products, drive proactive sales, and invest in capacity and sustainability.

• The group targets a 15% EBITA margin and 10% annual sales growth, maintaining a positive long-term view.