Incap (ICP1V) Q2 2024 earnings summary

Executive summary

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

• H1 2024 revenue was EUR 109.0 million, down 15.6% year-over-year, but excluding the largest customer and including the US unit, revenue grew 34.2% year-over-year.

• EBIT for Q2 2024 was EUR 6.8 million (11.7% margin), up 12.9% sequentially but down 9.9% year-over-year; adjusted EBIT for H1 2024 was EUR 13.2 million (12.1% margin), down 33.4% year-over-year.

• Net profit for Q2 2024 was EUR 5.1 million; H1 2024 net profit was EUR 10.0 million, down 28.8% year-over-year.

• Integration of the US acquisition was completed, with a EUR 2.8 million earn-out paid due to outperformance.

Financial highlights

• Q2 2024 revenue reached EUR 57.6 million, up 2.1% year-over-year and 12.2% sequentially.

• EBIT for Q2 2024 was EUR 6.8 million (11.7% margin), up 12.9% sequentially but down 9.9% year-over-year.

• H1 2024 net profit was EUR 10.0 million, down 28.8% year-over-year.

• Interest-bearing net debt at end of June 2024 was EUR -7.0 million, indicating a strong cash position.

• Investments in H1 2024 totaled EUR 4.9 million, mainly in UK and US production upgrades.

Outlook and guidance

• 2024 revenue is now expected to exceed 2023, with EBIT expected to be at the same level as 2023.

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

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

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

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