LN Future (LNFI) H1 2024 earnings summary

Executive summary

• Net sales for H1 2024 were 13,428 KSEK, down 1.9% year-over-year, mainly due to lower sales to distributor Biocodex in France/Belgium, while Sweden saw 55% growth and other distributors grew 61%.

• EBIT improved by 73% to -231 KSEK from -861 KSEK year-over-year, with gross margin rising to 54% from 53%.

• Cash flow from operations was 1,848 KSEK, up from -3,819 KSEK, and liquidity at period end was 2,995 KSEK.

• Strategic review ongoing to maximize shareholder value; central warehouse in Germany closed for cost efficiency.

Financial highlights

• Net sales: 13,428 KSEK (down 1.9% year-over-year); total operating income: 14,179 KSEK.

• EBIT: -231 KSEK (improved from -861 KSEK); EBITDA: -226 KSEK (from -848 KSEK).

• EPS: -0.02 SEK (from -0.16 SEK); equity per share: 0.50 SEK.

• Gross margin: 54% (up from 53%); soliditet (equity ratio): 52% (down from 59%).

• Cash flow from operations: 1,848 KSEK (from -3,819 KSEK); cash and equivalents: 2,995 KSEK.

Outlook and guidance

• Focus on expanding distribution in existing and new markets, with ongoing discussions with private label partners.

• Market for intimate care products projected to reach $43 billion by 2033, supporting growth potential.

• Strategic review continues, evaluating alternatives to maximize shareholder value.