Synsam Group (SYNSAM) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 earnings with net sales up 10% to 1,723 MSEK, strong growth across all markets, and improved profitability in all countries.

• EBITDA rose 16.9% to 469 MSEK, with margin improvement across all countries; profit after tax increased 20.5% to 168 MSEK.

• Strong performance in all markets, especially Finland with 24.9% sales growth, and continued expansion with 13 new stores opened in Q2.

• Subscription business (Synsam Lifestyle) grew, adding 22,000 new customers in Q2, with churn rate stable at 2.51%.

• Cost and restructuring programs contributed to improved profitability.

Financial highlights

• Net sales rose 10.0% year-over-year to 1,723 MSEK in Q2 2024; H1 net sales reached 3,244 MSEK (+9%).

• EBITDA increased 16.9% to 469 MSEK (margin 26.9%); H1 EBITDA was 828 MSEK (margin 25.2%).

• EBITA grew 21.6% and EBIT rose 25.9% year-over-year; EBIT margin reached 15.8%.

• Earnings per share increased to 1.14 SEK from 0.94 SEK; H1 EPS was 1.52 SEK (+42.4%).

• Cash flow from operating activities increased to 435 MSEK from 386 MSEK in Q2; H1 cash flow was 653 MSEK.

Outlook and guidance

• Targeting one million subscription customers by end of 2025, up from 799,000 in Q2 2024.

• Medium-term targets: annual organic growth of 8–12% and adjusted EBITDA margin of 25% or more.

• Continued focus on expanding the subscription business and store network, with emphasis on profitable growth and customer-centricity.