HAKI Safety (HAKI) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 declined 15% year-over-year to SEK 263 M, with organic sales down 6% and divestments impacting by -10%; exchange rates added 1%.

• Adjusted EBITA for Q2 was SEK 20 M (32), and net result after tax was SEK 11 M (25); EPS before dilution was SEK 0.40 (0.91).

• Gross margin improved to 36.6% (35.7) due to supply chain efficiencies and higher strategic rental share.

• Market remained soft, especially in new residential construction in Sweden and Austria, but demand for energy and infrastructure projects in Norway, Denmark, and France was strong.

• A new SEK 500 M credit facility was signed, with an option to extend by SEK 200 M, securing financing for operations and growth.

Financial highlights

• Q2 net sales: SEK 263 M (311), -15% year-over-year; H1 net sales: SEK 505 M (666), -24% year-over-year.

• Adjusted EBITA Q2: SEK 20 M (32), margin 7.6% (10.3); H1: SEK 34 M (66), margin 6.7% (9.9).

• Operating profit Q2: SEK 18 M (30); H1: SEK 25 M (62).

• Net result after tax Q2: SEK 11 M (25); H1: SEK 15 M (44).

• Cash flow from operating activities Q2: SEK 14 M (17); H1: SEK -4 M (77), impacted by investments in rental materials.

Outlook and guidance

• Management expects continued market uncertainty due to global events but notes increased market activity and holds a positive view for H2 2024.

• Expansion of e-commerce to the UK is planned for autumn, with further geographic growth anticipated.