Aixia Group (AIXIA) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered exceptional growth, with net sales up 290% year-over-year to 66.8 MSEK and EBITDA turning positive at 5.3 MSEK, reflecting strong demand for AI-based solutions and effective cost management.

• Operating profit (EBIT) reached 3.9 MSEK, reversing a loss from the prior year, and earnings per share improved to 1.85 SEK from -1.48 SEK.

• Cash flow from operations was robust at 29.4 MSEK, with cash and cash equivalents rising to 25.0 MSEK, significantly strengthening liquidity.

• Major solution deals, especially in AI, drove revenue growth, with a 480% increase in solution deals and expansion into new sectors such as banking and finance.

• Approval for trading on the US OTCQX market opens new opportunities for international investment and market expansion.

Financial highlights

• Net sales for Q2 2024 were 66,815 TSEK, up from 22,964 TSEK in Q2 2023; first half net sales reached 272,411 TSEK.

• EBITDA for Q2 was 5,270 TSEK, compared to -1,234 TSEK last year; EBIT was 3,868 TSEK versus -2,235 TSEK.

• Earnings after tax for Q2 were 2,921 TSEK, up from -2,327 TSEK; EPS improved to 1.85 SEK.

• Operating cash flow for the first half was 29.4 MSEK, up from -3.2 MSEK year-over-year.

• Cash and cash equivalents increased from 1.3 MSEK at year start to 25.0 MSEK at period end.

Outlook and guidance

• Management anticipates continued growth and profitability, supported by a strong foundation in AI and ongoing investments in technology and personnel.

• Expansion of consultancy services in GPU-accelerated data science and a focus on hyper-digitalization are planned for the second half of 2024.