Absolent Air Care Group (ABSO) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly net sales of SEK 367.4 million in Q2 2024, up 4.1% year-over-year, driven by strong performance in the Industrial segment despite continued weakness in China and challenges in Commercial Kitchen.

• EBITDA increased 4.6% to SEK 74.6 million with a margin of 20.3%; EBIT rose 1.0% to SEK 61.4 million, margin 16.7%.

• Earnings per share for Q2 were SEK 3.56, down from SEK 4.03 year-over-year.

• Cash flow from operating activities improved 51.2% to SEK 53.2 million in Q2, mainly due to more efficient working capital management.

Financial highlights

• H1 2024 net sales reached SEK 725.0 million, up 1.9% year-over-year; EBITDA rose 7.7% to SEK 150.2 million (margin 20.7%).

• EBIT for H1 was SEK 123.5 million (margin 17.0%), up 4.1% year-over-year.

• H1 earnings per share were SEK 7.95, up from SEK 7.46.

• Net debt decreased to SEK 283.1 million from SEK 346.1 million year-over-year; equity ratio improved to 52.1% from 47.1%.

• Investments in H1 totaled SEK 13.4 million, mainly in product development and production facilities.

Outlook and guidance

• Maintains a cautiously positive outlook, supported by strong Industrial segment performance and ongoing efficiency initiatives.

• Short-term challenges expected to persist in Commercial Kitchen, especially in Sweden and Norway, with targeted cost adjustments underway.