Ennogie Solar (ESG) Q2 2024 earnings summary

Executive summary

• Q2 2024 showed strong improvement in order intake, revenue, gross margin, and cash flow compared to Q1 2024, despite a challenging market with high interest rates and low construction activity.

• Strategic initiatives in Germany and Denmark, and expansion into France, Poland, Austria, and Switzerland, are expected to drive future growth.

• Collaboration with Dachdecker-Einkauf now covers 13% of the B2C quotation pipeline in Germany, supporting a healthy project pipeline.

Financial highlights

• H1 2024 net revenue was DKK 16.1m, a 64% decrease from DKK 44.5m in H1 2023.

• Gross profit for H1 2024 was DKK 6.4m, with a gross margin of 39.6%, up from 26.5% in H1 2023.

• EBITDA for H1 2024 was DKK -7.6m, down from DKK -5.3m in H1 2023, mainly due to lower turnover, but supported by improved gross margin and cost reductions.

• Free cash flow for H1 2024 was DKK -10.4m, compared to DKK -8.8m in H1 2023.

• Working capital increased to DKK 16.5m at the end of H1 2024, up from DKK 7.7m at the end of H1 2023, mainly due to higher inventories and receivables.

Outlook and guidance

• 2024 revenue is expected to decrease to DKK 70-90m from 2023, reflecting lower construction activity and inflation.

• EBITDA for 2024 is expected in the range of DKK -5m to 0m, with restrained spending.

• Order intake, especially in B2B, and market conditions such as interest rates and electricity prices, are key factors for 2024 performance.

• New markets (Poland, France) are not expected to significantly impact 2024 revenue.