Zenergy (ZENZIP) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw a sharp decline in revenue to 630 KSEK from 35,059 KSEK in Q2 2023, with a net loss of -3,180 KSEK compared to -804 KSEK last year.

• The company faced a challenging market with few new construction starts and negative cash flow, but management sees early signs of recovery and is investing in new business areas.

• Strategic initiatives include the launch of an energy storage business area, acquisition of Watts 2 You AB, and a new partnership with Gridit AB for energy optimization services.

Financial highlights

• Net sales for Q2 2024 were 35 KSEK, down from 34,529 KSEK in Q2 2023; H1 2024 net sales were 456 KSEK versus 58,897 KSEK in H1 2023.

• Operating loss after financial items was -3,180 KSEK in Q2 2024 and -6,053 KSEK for H1 2024, a significant deterioration year-over-year.

• Cash flow from operations for H1 2024 was -11,138 KSEK, compared to 9,280 KSEK in H1 2023; total cash flow was -2,210 KSEK.

• Equity ratio improved to 38.8% at June 30, 2024, from 23.4% a year earlier, supported by a new share issue.

• Liquid assets at period end were 6,157 KSEK, down from 10,445 KSEK at June 30, 2023.

Outlook and guidance

• Management expects improved conditions for the construction sector due to lower interest rates and sees positive signals from customers post-summer.

• Focus remains on cost control, recovery in core construction business, and commercialization of new energy efficiency offerings.