Alcadon Group (ALCA) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 rose 15% year-over-year to SEK 425 million, with EBITA up 167% to SEK 30 million, and strong operating cash flow of SEK 60 million.

• Organic growth was 8% in Q2, with improved demand in data centers and broadband, and cabling remained stable.

• Acquisition of Wood Communications in Ireland completed in April, expanding European presence and product synergies.

• CEO transition announced: Sonny Mirborn to be succeeded by Fredrik Valentin by January 2025.

• Staff ownership at 15%, with 6,000 shareholders.

Financial highlights

• Net sales reached 1,637 MSEK (R12), with a CAGR of 32% since 2019.

• EBITA R12 was 119 MSEK; Q2 EBITA margin at 7.2% (3.1% last year); gross margin increased to 26.7%.

• H1 2024 EBITA margin at 6.2% (5.2% last year); net margin at 3.0% (1.2%).

• Cash flow from operating activities in H1 reached SEK 72 million, up from SEK 36 million.

• Net debt reduced to SEK 329 million (from SEK 406 million), with net debt/EBITDA at 2.3x.

Outlook and guidance

• Financial targets remain: annual net sales growth of 20%, EBITA margin above 10%, and net debt/EBITDA between 2 and 3.

• Vision 2025 aims for SEK 2.6 billion in net sales and SEK 280 million EBITA.

• Focus continues on organic growth, margin improvement, and selective acquisitions.

• Market conditions are improving, especially in the Data Centre and Broadband segments.