Greenmerc (GMERC) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 reached 89.4 MSEK, up 147% year-over-year, driven by expanded crypto product offerings and improved competitiveness.

• EBITDA for Q2 was 1.41 MSEK, a significant improvement from -0.07 MSEK in Q2 2023.

• Net income after tax for Q2 was 0.86 MSEK, compared to a loss of -0.23 MSEK in the prior year.

• Cash flow from operating activities turned positive, reaching 2.49 MSEK in Q2 and 6.96 MSEK for H1 2024.

• Successful listing on NGM Nordic SME in June 2024 strengthened the capital base and market visibility.

Financial highlights

• Q2 gross profit increased 66% year-over-year to 3.76 MSEK; H1 gross profit rose 145% to 9.84 MSEK.

• Operating income (EBIT) for Q2 was 1.19 MSEK, up from -0.25 MSEK; H1 EBIT was 3.42 MSEK, up from -1.00 MSEK.

• Q2 net income after financial items was 0.86 MSEK, impacted by a -0.37 MSEK crypto asset revaluation.

• Cash position at quarter-end was 23.4 MSEK, up from 5.5 MSEK a year earlier.

• Equity ratio improved to 89% from 61% year-over-year.

Outlook and guidance

• Management expects the positive trend to continue, citing strong industry momentum and new crypto ETF launches.

• The company is engaged in several acquisition discussions, enabled by its public listing.

• Anticipates further growth as the worst selling pressure in the crypto market is seen as past.