eEducation Albert (ALBERT) Q2 2024 earnings summary

Executive summary

• Net sales grew 3% year-over-year in Q2 2024 to SEK 49.5 million, driven by strong B2B sales, especially in the US, and Strawbees product breakthroughs.

• Profitability and restructuring programs reduced personnel costs by 10% and improved operational efficiency, with a new organizational structure launched in April 2024.

• Dual revenue streams from B2B (schools) and B2C (consumers) provide predictable and scalable revenues.

• Expanded product portfolio includes digital learning apps, physical kits, and educational films, sold under multiple brands in over 10 markets.

• Strawbees brand saw a 90% sales increase in the US in May 2024 compared to May 2023.

Financial highlights

• Net sales reached SEK 49.5 million in Q2 2024, representing 3% organic growth year-over-year.

• EBITDA improved to SEK -1 million, nearly break-even, with one-time costs of 0.2 MSEK; adjusted EBITDA was -0.9 MSEK.

• B2B sales increased to 62% of total revenue, up from 57% last year, mainly from U.S. Strawbees sales.

• Cash flow from operations was negative, impacted by royalty payments, working capital changes, and restructuring costs; period-end cash balance was SEK 65 million.

• Gross margin improved to 81% in Q2 2024, up from 80% YoY.

Outlook and guidance

• Strategic focus on achieving positive EBITDA in 2025 and positive cash flow in 2026 with existing cash reserves.

• Plans to double down on high-performing products and markets, especially in the US and Albert Junior.

• Continued cross-selling and localization of products in core markets (US, UK, Nordics) prioritized over new market entries.

• B2C segment aims for subscriber growth at low acquisition cost while maintaining high customer lifetime value.