Green Cargo (GC) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 increased by 8% to SEK 1,123 million compared to Q2 2023, driven by higher revenues and improved customer mix.

• Operating result for Q2 was SEK -7 million, down from SEK 28 million in Q2 2023, impacted by lower environmental compensation and restructuring costs.

• Organic operating result improved to SEK -59 million from SEK -122 million in Q2 2023, despite SEK 8 million in restructuring costs.

• New transport contracts worth SEK 329 million were signed in Q2, up from SEK 237 million in Q2 2023.

• Focus remains on cost reduction, efficiency, and service improvements, including fleet optimization and AI-supported IT tools.

Financial highlights

• Q2 2024 net sales: SEK 1,123 million (Q2 2023: SEK 1,037 million); H1 2024: SEK 2,205 million (H1 2023: SEK 2,163 million).

• Q2 operating result: SEK -7 million (Q2 2023: SEK 28 million); H1: SEK -104 million (H1 2023: SEK 69 million).

• Q2 organic operating result: SEK -59 million (Q2 2023: SEK -122 million); H1: SEK -210 million (H1 2023: SEK -229 million).

• Q2 result after tax: SEK -16 million (Q2 2023: SEK -8 million); H1: SEK -153 million (H1 2023: SEK 15 million).

• Q2 cash flow from operations: SEK 144 million (Q2 2023: SEK 105 million); H1: SEK -9 million (H1 2023: SEK 182 million).

Outlook and guidance

• Underlying demand for rail freight remains strong, especially from Swedish base industry, with potential for growth if reliability improves.

• Ongoing cost-saving and efficiency programs, including staff reductions and fleet optimization, are expected to further improve results.

• Political support for rail and a government review of track access charges may benefit future profitability.