XANO Industri (XANO) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 decreased by 6% to 1,721 MSEK compared to 1,838 MSEK last year, with operating income down 51% to 92 MSEK and net income at 46 MSEK, reflecting a challenging market and lower profitability.

• Cost adjustments and investments in new business areas and acquisitions continued, with Graniten Engineering and Dansk Rotations Plastic acquired during the period.

Financial highlights

• Q2 2024 net sales were 896 MSEK (942), operating income 61 MSEK (102), and net income 33 MSEK (67), with EPS at 0.55 SEK (1.15).

• H1 2024 EPS was 0.77 SEK (2.14), and cash flow from operations was 10 MSEK (52).

• Operating margin for H1 was 5.3% (10.3%), and profit margin 3.5% (8.7%).

• Equity per share at period end was 28.03 SEK (26.86), with a solidity of 42% (40%).

Outlook and guidance

• No significant recovery is expected in established customer segments for the remainder of the year, with ongoing uncertainty and external risks impacting business conditions.

• New business outside core markets is gradually contributing, but turbulence continues to affect some of these as well.