Lyckegård Group (LYGRD) Q2 2024 earnings summary

Executive summary

• Achieved a strong quarter in line with forecasts after restructuring to focus solely on irrigation and outdoor environments, divesting the loss-making Soil & Seed segment and reducing overhead costs, incurring one-time charges of 42 MSEK.

• Operational business delivered record sales and strong cost control, with a 12.8 MSEK EBITDA in Q2 2024 for Water & Outdoor, up from 10.8 MSEK year-over-year.

• Growth driven by high demand in agricultural irrigation and successful project completions in green area irrigation and golf course equipment.

Financial highlights

• Q2 2024 net sales: 73,048 TSEK (up 12% year-over-year); H1 2024 net sales: 114,639 TSEK (up 37% year-over-year).

• Q2 2024 EBIT: 4,435 TSEK (down from 5,559 TSEK); H1 2024 EBIT: -7,128 TSEK (down from 751 TSEK), impacted by one-time restructuring costs.

• Adjusted H1 2024 EBITDA (excluding one-time items): 7,543 TSEK (vs. 7,482 TSEK year-over-year).

• Q2 2024 cash flow: 3,018 TSEK (down from 13,834 TSEK); H1 2024 cash flow: 1,119 TSEK (down from 11,425 TSEK).

• Equity at period end: 28,822 TSEK (down from 98,736 TSEK year-over-year); liquidity at 4,043 TSEK.

Outlook and guidance

• Continued strong demand expected for irrigation solutions due to climate change and increased risk of droughts.

• Order books for autumn nearly full, supporting growth ambitions.

• Financial targets: annual sales growth of at least 10%, EBITA margin of at least 8%, and net debt/EBITA below 2.5x long-term.