B3 Consulting Group (B3) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 11% year-over-year to 266.4 MSEK, with EBITDA down 44.9% to 15.0 MSEK and profit after tax falling 67.1% to 5.5 MSEK; EBIT dropped 61% to 8.6 MSEK with a margin of 3.2%.

• H1 2024 sales fell 12.2% to 547.7 MSEK, EBIT dropped 74% to 16.5 MSEK, and profit after tax was 11.7 MSEK.

• Utilization rate improved to 82.7% in Q2, up from Q1 but below prior year due to lower demand and fewer consultants.

• Cost-saving programs are on track, with further improvements expected in Q3 and Q4; focus is shifting to revenue growth and competitiveness.

• Major acquisitions of Webstep and B3 Poland will significantly boost volume and EBIT from Q4 2024; new CEO appointed and B3 Elevate launched.

Financial highlights

• Net sales for Q2 2024: 266.4 MSEK (299.3 MSEK Q2 2023), -11% year-over-year.

• EBITDA: 15.0 MSEK (27.2 MSEK), margin 5.6% (9.1%).

• EBIT: 8.6 MSEK (22.0 MSEK), margin 3.2% (7.4%).

• Profit after tax: 5.5 MSEK (16.7 MSEK), EPS after dilution: 0.62 SEK (1.68 SEK) for Q2 and 1.25 SEK for H1.

• Cash flow from operations: 21.2 MSEK in Q2 and 5.4 MSEK for H1, both below prior year.

Outlook and guidance

• Market expected to remain weak in Q3, with signs of demand recovery in Q4; actions taken are expected to increase volume and EBITDA in Q4.

• Full impact of cost-saving initiatives and acquisitions expected in Q1 2025.

• Focus is on revenue growth and competitiveness through sales and recruitment initiatives.