ABAS Protect (ABAS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 26,145 TSEK, down 18% year-over-year, with a bruttomarginal of 48.3% and operating profit of 1,106 TSEK.

• For the first half of 2024, net sales reached 45,839 TSEK, a 13% decrease year-over-year, with a bruttomarginal of 50.1% and operating profit of 2,045 TSEK.

• The company strengthened its sales organization and expanded export efforts, with new hires in Sweden and Poland and initial orders from the Faroe Islands and Denmark.

• Sales to critical infrastructure and security segments increased, now representing 9% of total sales, up from 2% last year.

Financial highlights

• Q2 2024 net sales: 26,145 TSEK (31,138 TSEK in Q2 2023); H1 2024: 45,839 TSEK (51,208 TSEK in H1 2023).

• Q2 2024 operating profit: 1,106 TSEK (2,823 TSEK in Q2 2023); H1 2024: 2,045 TSEK (3,189 TSEK in H1 2023).

• Q2 2024 net income: 629 TSEK (1,916 TSEK in Q2 2023); H1 2024: 928 TSEK (1,987 TSEK in H1 2023).

• Bruttomarginal improved to 48.3% in Q2 2024 (42.9% in Q2 2023) and 50.1% in H1 2024 (47.3% in H1 2023).

• Operating margin for H1 2024 was 4.46%.

Outlook and guidance

• Focus for Q3 2024 is on strengthening sales in existing markets and optimizing logistics.

• Improved economic conditions and interest rate cuts are seen as key to reviving the construction segment.