Systembolaget (SB) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 decreased by 1.1% to SEK 10,349 million, mainly due to the Easter holiday falling in Q1 this year versus Q2 last year.

• Operating profit for Q2 was SEK 97 million, down 46.5% year-over-year, impacted by lower gross profit, a one-off reserve reversal last year, and higher strategic initiative costs.

• Net profit for Q2 was SEK 95 million, a 42.4% decrease compared to Q2 2023.

• Distribution disruptions due to an IT attack on a major distributor led to product shortages and higher costs.

• Systembolaget ranked highest in Verian's reputation index in May 2024.

Financial highlights

• H1 2024 net sales rose 2.1% to SEK 18,718 million, driven by higher alcohol taxes and supplier price increases despite lower volumes.

• H1 operating profit was SEK 48 million, down 68.3% year-over-year.

• H1 net profit was SEK 74 million, a 52.1% decrease from H1 2023.

• Cash flow from operations in H1 was SEK 36 million, down from SEK 212 million last year.

• Return on equity (R12) increased to 21.4% from 19.3% year-over-year, mainly due to a higher dividend in May 2024.

Outlook and guidance

• Underlying price increases are not sufficient to offset lower volumes and rising cost inflation.

• Strategic initiatives in digitalization, sustainability, and public health will continue, with close monitoring of cost and volume trends.