Careium (CARE) Q2 2024 earnings summary

Executive summary

• Achieved solid Q2 2024 growth and profitability, with net sales up 7.3% to SEK 229.4 million and EBIT up 48.9% to SEK 21.8 million, despite market slowdowns in the UK and Sweden.

• Launched Resilient SIM (rSIM) technology, enhancing connectivity and reliability for customers and supporting aftermarket sales.

• Focused on high-potential European markets, especially Germany and France, which delivered over 180% sales growth year-over-year.

• Maintained stable performance despite higher freight costs, shipping delays, and infrastructure transition delays in the UK and Sweden.

• Cleared out underperforming UK contracts and prioritized innovation and R&D investment.

Financial highlights

• Q2 2024 net sales: SEK 229.4 million (up 7.3% year-over-year); service sales: SEK 163.3 million (up 2.8%); product sales: SEK 66.1 million (up 20.5%).

• Gross margin: 41.7% (down from 42.2%); EBITDA margin: 16.4% (up from 15.4%); EBIT margin: 9.5% (up from 6.8%).

• Free cash flow: SEK 0.5 million (down from SEK 7.7 million); cash flow from operations: SEK 14 million (down from SEK 18.5 million).

• Net debt: SEK 183.2 million (down from SEK 216.8 million year-over-year); cash at period end: SEK 34.8 million.

• Market capitalization: SEK 739.5 million (up from SEK 316.2 million); equity/assets ratio: 60.6% (up from 57.8%).

Outlook and guidance

• Full-year 2024 guidance maintained: 12–15% organic growth and improved EBIT.

• Management expects higher growth in H2, especially Q4, and continued R&D investment over M&A.

• H1 2024 delivered 8% growth and 86% EBIT increase, supporting confidence in guidance.