Byhmgard (SPIFF) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 decreased 13% year-over-year to 8,977 TSEK, mainly due to the sale of Metal Casino.

• EBITDA improved to -3.2 MSEK from -3.7 MSEK sequentially, driven by higher gross margin and lower operating costs.

• Net result for Q2 was -4,084 TSEK, an improvement from -6,294 TSEK in Q2 2023, positively impacted by a 4,504 TSEK gain from the Metal Casino sale.

• Early Q3 shows a 10% revenue increase over Q2, or over 50% when adjusted for the Metal Casino divestment.

• Focus remains on revenue growth to achieve positive EBITDA, with ongoing cost control and operational improvements.

Financial highlights

• H1 2024 net revenue fell 12% year-over-year to 20,631 TSEK.

• Q2 operating cash flow was -4,206 TSEK, down from -829 TSEK in Q2 2023.

• Cash and cash equivalents at period end were 573 TSEK, compared to 3,868 TSEK a year earlier.

• Equity at period end was 7,940 TSEK, down from 47,776 TSEK in Q2 2023.

• The board assesses that current financing is sufficient for ongoing operations this year.

Outlook and guidance

• Q3 to date shows strong margin improvements and revenue growth despite restrained marketing.

• Management targets break-even EBITDA, requiring further revenue growth and increased marketing investment.

• Discussions ongoing with suppliers for marketing financing solutions.