Agtira (AGTIRA) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 7.1 MSEK, down from 8.6 MSEK in Q2 2023, reflecting production disruptions earlier in the year.

• EBITDA for the quarter was -8.5 MSEK, impacted by one-time costs for replanting and sanitation after a plant disease in Q1.

• Production levels recovered during the quarter, with the main Härnösand facility operating at 72% capacity versus 95% last year.

• Strategic focus on large-scale greenhouse expansion, including new facilities in Haninge and Kramfors.

• Strengthened financial position through a 20 MSEK shareholder loan secured after the period's end.

Financial highlights

• Net sales: 7,105 KSEK (Q2 2023: 8,589 KSEK).

• EBITDA: -8,474 KSEK (Q2 2023: -5,407 KSEK), including ~0.7 MSEK in temporary cost increases.

• EBIT: -10,516 KSEK (Q2 2023: -6,565 KSEK).

• Cash flow from operations: -8,449 KSEK (Q2 2023: -11,547 KSEK).

• Cash and cash equivalents at period end: 916 KSEK.

Outlook and guidance

• Production expected to stabilize with new safety measures and lessons learned from Q1 disruptions.

• Expansion continues with Haninge greenhouse (3,000 sqm) set to start production in October 2024.

• Kramfors facility to be built in two phases, with the first 2,000 sqm operational in Q3 2024 and an additional 6,000 sqm in Q1 2025.

• Partnership with Newsec to support further expansion and site selection for new greenhouses.