HusCompagniet (HUSCO) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue declined to DKK 1,062m, down 17% year-over-year, due to fewer deliveries after low 2023 sales.

• Gross profit margin improved to 23.4% from 20.9%, supported by cost control and absence of prior-year provision re-evaluations.

• EBITDA for H1 2024 was DKK 45m (margin 4.2%), down from DKK 57m (margin 4.4%) last year.

• Free cash flow increased to DKK 130m from DKK 87m, driven by operating activities and working capital timing.

• Net profit for H1 2024 was DKK 7m, on par with H1 2023, with discontinued operations contributing DKK 8m.

Financial highlights

• Q2 2024 revenue was DKK 579m, down from DKK 624m, mainly due to fewer B2B and Sweden deliveries.

• Q2 gross profit rose to DKK 128m from DKK 118m, with margin up to 22.1% from 18.9%.

• Q2 EBITDA increased to DKK 24m from DKK 17m, margin at 4.1% versus 2.7%.

• Q2 free cash flow was DKK 133m, up from DKK 61m.

• EBIT for H1 2024 was DKK 21m, down from DKK 35m year-over-year.

Outlook and guidance

• 2024 revenue guidance narrowed to DKK 2.3–2.4bn from DKK 2,300–2,600m.

• 2024 EBITDA expected at DKK 90–120m, EBIT at DKK 40–70m.

• Expected 850–950 house deliveries in 2024; dividend suspended until leverage is below 2x.

• Dividend distribution suspended for 2024; reintroduction planned when leverage target is met.