ASBISc Enterprises (ASB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $645.9M, down 4.2% year-over-year; H1 2024 revenues reached $1,359.1M, down 2.7% year-over-year.

• Net income for Q2 was $6.1M, down 46% year-over-year; H1 2024 net profit was $20.1M, down 30% year-over-year.

• Gross profit margin remained stable at nearly 8% in Q2 and H1 2024.

• Paid record $0.50/share dividend on 2023 results, totaling ~$28M, the highest in company history.

• Entered Azerbaijan market, expanded iSpace stores to 34, and observed growth in Poland, UAE, Germany, Azerbaijan, and the Netherlands.

Financial highlights

• Q2 2024 gross profit: $51.5M (down 5% year-over-year); H1 2024 gross profit: $110.6M (down 4.9%).

• SG&A costs elevated due to human capital investments and redundancies; selling expenses rose 7.9% in Q2 2024.

• Net cash outflows from operations in H1 2024 were $66.1M; net working capital utilization increased.

• CapEx steady, mainly for Kazakhstan distribution center.

• Dividend payout from 2023 profits reached $0.50 per share.

Outlook and guidance

• Management maintains 2024 guidance: revenues between $3.1B–$3.4B and net profit $60M–$64M.

• Confident in achieving full-year forecasts, with positive trends expected in H2 2024, especially from South Africa and Breezy trade-in business.

• Expect cash from operations to turn positive for the year, with improvement in Q3 and Q4.

• Dividend growth expected to continue, subject to profitability.

• Focus remains on profitability, cost control, and expansion in CEE, CIS, Africa, and Western Europe.