KH Group (KHG) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 were EUR 167.4 million, down 10.6% year-over-year on a pro forma basis; operating profit was EUR -1.8 million, with a net loss of EUR -6.2 million.

• The group divested its HTJ holding, receiving EUR 13.1 million in cash, which was used to repay bank loans and support strategic changes.

• New CEO Ville Nikulainen and CFO Tommi Rötkin started on 1 June 2024.

Financial highlights

• Pro forma net sales for H1 2024: EUR 167.4 million (down from EUR 187.3 million in H1 2023).

• Pro forma EBITDA: EUR 15.8 million (9.4% margin); pro forma operating profit: EUR -0.8 million.

• IFRS net sales: EUR 167.4 million; operating profit: EUR -1.8 million; net profit: EUR -6.2 million.

• Earnings per share: EUR -0.07; equity per share: EUR 1.25.

• Cash and cash equivalents at period end: EUR 4.1 million; gearing: 239.6%.

Outlook and guidance

• Updated 2024 guidance: pro forma net sales EUR 340–360 million and operating profit EUR 4–7 million, revised downward due to Indoor Group's weak performance.

• Strategic focus remains on building an industrial group around KH-Koneet and divesting other business areas.