DUG Foodtech (DUG) Q2 2024 earnings summary

Executive summary

• Focused on cost-effective sales initiatives, new packaging, recipe, company name, and branding to support growth, with primary markets in Sweden, Germany, and European café chains.

• Positive feedback from product launches in Germany and at major coffee events; DUG Barista gaining traction among baristas and buyers.

• Ongoing cost reduction plan implemented, with further reviews planned throughout the year.

Financial highlights

• Q2 2024 net sales were 412 TSEK, down 72% from 1,458 TSEK in Q2 2023, due to discontinued customers and new sales focus.

• EBITDA for Q2 2024 was -3,843 TSEK (Q2 2023: -7,823 TSEK); EBIT was -3,862 TSEK (Q2 2023: -7,843 TSEK).

• Net loss after tax for Q2 2024 was -5,010 TSEK (Q2 2023: -8,070 TSEK); EPS was -0.12 SEK (-0.33 SEK in Q2 2023).

• H1 2024 net sales were 522 TSEK (H1 2023: 3,281 TSEK); EBITDA -7,219 TSEK (H1 2023: -16,102 TSEK); EBIT -7,256 TSEK (H1 2023: -16,173 TSEK).

• Cash flow from operations in Q2 2024 was -3,672 TSEK (Q2 2023: -7,104 TSEK); cash at period end was 643 TSEK.

Outlook and guidance

• Strategy remains focused on international expansion, especially in Germany and European café chains, with continued cost control.

• Swedish market consolidation offers potential to regain market share; national launch with Mathem planned for September.

• Company targets 80 MSEK in sales and positive EBIT by 2025.