Karnell Group (KARNEL) Q2 2024 earnings summary

Executive summary

• Net sales in Q2 2024 rose 23% year-over-year to SEK 357 million, mainly driven by acquisitions, with organic growth of 1%.

• Achieved 14% EBITDA growth and 14.1% EBITA growth, with a CAGR for EBITDA and EBITA of 42% since 2021.

• Completed acquisitions of Ojop, NE Engineering, and Sähkö-Jokinen, expanding presence in product-owning and niche manufacturing segments.

• IPO and over-allotment option raised SEK 37.5 million, strengthening the balance sheet and supporting future growth.

• Operates with low leverage and a strong capital structure, supporting ongoing M&A activity.

Financial highlights

• Net sales increased by 23% year-over-year to SEK 357 million in Q2 2024.

• EBITDA rose by 14% to SEK 41 million; EBITA increased 14.1% to SEK 40.8 million.

• Organic sales growth was 1% (SEK 2 million), with acquisitions contributing 22% of the increase.

• Cash flow from operating activities in Q2 was SEK 30.5 million.

• Net debt at quarter-end was SEK 93 million, with leverage at 0.6x.

Outlook and guidance

• Entering H2 with improved market sentiment and more confidence compared to H1.

• Market outlook remains stable, with lower inflation and interest rates expected to boost investment, especially in construction.

• Q2 and Q4 are typically the strongest quarters; Q3 expected to be seasonally lower.

• Central costs expected to normalize at SEK 7–8 million per quarter going forward.

• Working capital expected to release in Q3, supporting cash flow.