TagMaster (TAGM) Q2 2024 earnings summary

Executive summary

• Net sales grew 4.8% to SEK 102.9 million in Q2 2024, with organic and currency-adjusted growth at -9.6%.

• Adjusted EBITDA fell 25.8% to SEK 11.6 million, margin at 11.3%.

• Operating profit was SEK 2.5 million, down from SEK 7.7 million, with a margin of 2.4%.

• Cash flow from operating activities was strong at SEK 15.4 million in Q2 and SEK 41.2 million for H1.

• The RTMS acquisition in the US contributed significantly, with 225% sales growth in Q2 for the radar business.

Financial highlights

• H1 2024 net sales increased 4.9% to SEK 201.9 million; currency-adjusted growth was -12.4%.

• Adjusted EBITDA for H1 was SEK 21.0 million, margin at 10.3%.

• Operating profit for H1 was SEK 0.7 million, down from SEK 7.8 million.

• Net profit for H1 was SEK -1.9 million, EPS at SEK -0.13.

• Gross margin in Q2 was 69.3% (down from 71.6%); adjusted gross margin also 69.3%.

• Equity ratio at period end was 60.9%.

Outlook and guidance

• Management remains positive on long-term prospects, citing global infrastructure investments and demand for smart mobility solutions.

• Focus remains on organic and acquired growth, cost management, and operational efficiency.

• The company expects continued benefit from green investment packages in Europe and the US.