Lohilo Foods (LOHILO) Q2 2024 earnings summary

Executive summary

• Net sales grew 17.5% to 62,720 TSEK in Q2 2024, with own brands up 40.3% and export down 5.2%.

• EBIT turned positive at 1,631 TSEK (vs. -1,250 TSEK), and net profit reached 935 TSEK (vs. -2,262 TSEK) in Q2.

• Cost reductions from restructuring led to lower external and personnel expenses.

• First positive after-tax result since Q3 2020, driven by strong Swedish sales and own brand growth.

Financial highlights

• Q2 EBITDA was 3,073 TSEK (381 TSEK), with an EBITDA margin of 4.9%.

• H1 2024 net sales rose 12.7% to 108,691 TSEK; own brands up 27.8%, distributed brands down 34.5%.

• H1 EBIT was 964 TSEK (vs. -7,349 TSEK), net result -904 TSEK (vs. -9,210 TSEK).

• Cash flow for Q2 was 2,188 TSEK (vs. -2,045 TSEK), with liquidity at 8,894 TSEK at period end.

• Gross margin in Q2 fell to 31.3% (from 33.2%) due to a major campaign and FX effects.

Outlook and guidance

• Full-year 2024 guidance maintained: net sales to grow at least 10% with EBITDA margin above 5%.

• Negative FX trends have slightly dampened EBITDA margin but sales growth remains strong.

• Focus remains on profitable growth, especially in own brands and export markets.