Elmera Group (ELMRA) Q2 2024 earnings summary

Executive summary

• Net revenue grew year-over-year in Q2 2024, with adjusted net revenue reaching NOK 389m and adjusted EBIT stable at NOK 106m, despite volume declines from mild weather.

• Profit for the period increased to NOK 37m from NOK 9m in Q2 2023, despite higher operating expenses driven by the IAC bankruptcy.

• Operating expenses rose due to a NOK 30 million loss from a major customer bankruptcy in the Nordic segment.

• Refinancing of credit and guarantee facilities was completed, and IT platform migration is progressing.

• Dividend of NOK 2.3 per share was distributed in May 2024.

Financial highlights

• Net revenue adjusted was NOK 389 million, up from NOK 376 million in Q2 2023.

• EBIT adjusted reached NOK 106.4 million, slightly above NOK 105.5 million last year.

• Operating expenses increased to NOK 282 million from NOK 270 million, mainly due to the IAC bankruptcy.

• Free cash flow was strong, with net working capital reduced by NOK 345 million year-over-year.

• Net cash from operating activities was NOK 594m, up from NOK 417m in Q2 2023.

Outlook and guidance

• Targets for 2024–2025 include net revenue growth in all segments and stable adjusted OpEx.

• EBIT adjusted target set between NOK 550–600 million, with a positive trend expected.

• Dividend policy remains at an 80% payout ratio.

• The Group expects continued support from the new facilities agreement, with execution targeted for September 2024.