Incap (ICP1V) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was EUR 57.6 million, up 2.1% year-on-year and 12.2% sequentially, with the US acquisition contributing EUR 9.0 million.

• Excluding the largest customer, Q2 revenue grew 30.2% year-on-year, and H1 2024 revenue excluding the largest customer grew 34.2%.

• EBIT for Q2 was EUR 6.8 million (11.7% margin), up 12.9% from Q1 but down from 13.3% margin last year; adjusted EBIT was EUR 7.0 million (12.1% margin), down 15.7% year-on-year.

• Integration of the US acquisition has been completed, supporting growth and cross-selling; a EUR 2.8 million earnout was paid in June 2024.

• Investments in facilities and technology upgrades continued in Slovakia, the UK, and the US, supporting operational efficiency and future growth.

Financial highlights

• Q2 revenue reached EUR 57.6 million, up 2.1% year-on-year and 12.2% sequentially from Q1.

• EBIT for Q2 was EUR 6.8 million (11.7% margin), down 9.9% year-on-year; net profit for Q2 was EUR 5.1 million.

• H1 2024 revenue was EUR 109.0 million, down 15.6% year-on-year; H1 net profit was EUR 10.0 million.

• Inventory levels reduced to EUR 60.5 million on a comparable basis, reflecting effective inventory management.

• Cash and cash equivalents at end of June 2024 were EUR 39.8 million; interest-bearing net debt was negative EUR 7.0 million.

Outlook and guidance

• 2024 revenue is now guided to be higher than 2023, with EBIT expected to be at the same level as last year.

• Revenue growth guidance range is 0%-20%.

• Second half revenue and EBIT are expected to exceed the first half, driven by volume growth and improved customer outlook.

• Higher volumes are anticipated to improve EBIT margin, though product mix will influence the final outcome.

• Previous guidance anticipated both revenue and EBIT to be lower than 2023.