Concejo (CNCJO) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 increased to 266.1 MSEK from 240.5 MSEK year-over-year, but EBIT fell to -23.4 MSEK from -7.3 MSEK, reflecting higher costs and investments.

• Net income for H1 2024 was -17.2 MSEK compared to -10.7 MSEK in H1 2023; EPS was -1.48 SEK versus -1.00 SEK.

• Concejo distributed an extraordinary dividend of 3.00 SEK per share (35.1 MSEK total) in May 2024.

• Firenor International secured a major order and framework agreements worth about 500 MSEK post-period, strengthening its order book.

Financial highlights

• Q2 2024 net sales were 128.9 MSEK (130.5 MSEK Q2 2023); EBIT was -11.6 MSEK (9.2 MSEK); EBT was -6.4 MSEK (7.8 MSEK).

• H1 2024 net sales rose 11% year-over-year; EBIT margin declined due to increased investments and lower profitability in key segments.

• Cash flow from operations improved to -3.1 MSEK from -73.2 MSEK in H1 2023.

• Equity at period end was 713.6 MSEK (747.1 MSEK June 2023); equity ratio 69%.

Outlook and guidance

• Management expects improved results as new orders in Firenor International and other segments are delivered, but notes continued volatility between quarters.

• Anticipates benefits from Riksbank rate cuts for SBF Fonder and sees a positive outlook for Optronics and Firenor as order books grow.