Dividend Sweden (DIV) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 rose sharply to 18.5 MSEK from 2.5 MSEK year-over-year, with EPS at 0.20 SEK versus 0.03 SEK.

• Net asset value per share increased 20% during the quarter to 0.85 SEK.

• Major portfolio holding Evendo saw strong operational and valuation growth, with a partial sale at a 75% premium to book value.

• Portfolio company Medicortex received a $1.4M research grant from the US Department of Defense.

Financial highlights

• Q2 2024 net sales were 3.6 MSEK, down from 6.0 MSEK year-over-year; H1 2024 net sales were 4.3 MSEK, down from 19.4 MSEK.

• H1 2024 net profit was 17.0 MSEK, up from 3.5 MSEK year-over-year; EPS for H1 was 0.18 SEK, up from 0.05 SEK.

• Operating expenses for H1 2024 were 6.3 MSEK, mainly from securities purchases.

• Cash and equivalents at period end were 0.7 MSEK; equity totaled 78.7 MSEK.

• Soliditet (equity ratio) at period end was 95%, up from 87% year-over-year.

Outlook and guidance

• Management expects continued positive development in Evendo and increased activity in the microcap market in H2 2024.

• Anticipates more transactions and new listings in the microcap segment, with a strong deal pipeline for Q3 and Q4.