Momentum Group (MMGR) Q2 2024 (Q&A) earnings summary

Executive summary

• Revenue grew 41% year-over-year in Q2 2024 to SEK 773 million, with acquisitions as the main driver and organic growth at 1%.

• EBITA increased by 35% to SEK 88 million, with a margin of 11.4%, and net profit rose 26% to SEK 54 million.

• Seven acquisitions completed year-to-date, adding SEK 250 million in annual revenue and significantly strengthening the portfolio.

• The business climate remained stable overall, though some customer and product segments, such as pulp and paper, saw lower activity.

• Strategic focus is shifting towards sectors with stronger growth opportunities, reducing reliance on weaker segments.

Financial highlights

• Q2 2024 revenue: SEK 773 million (41% increase year-over-year); EBITA: SEK 88 million (35% increase); EBITA margin: 11.4%.

• H1 2024 revenue: SEK 1,434 million (36% increase); EBITA: SEK 163 million (30% increase); profit: SEK 97 million.

• Organic sales growth rate declined to 0.6% in Q2, continuing a downward trend since Q3 2023.

• Acquisitions contributed SEK 208 million to Q2 revenue, with acquired units showing an EBITA margin of approximately 11%.

• Earnings per share for Q2 were SEK 1.05 (up 17%), and SEK 1.90 for the first half (up 9%).

Outlook and guidance

• The market is expected to remain stable but cautious, with economic uncertainty and high interest rates persisting.

• The group expects continued stable performance, leveraging acquisitions and maintaining strong cash flow.

• Market demand is expected to remain stable overall, but visibility is limited due to the short-term nature of the aftermarket business.

• The acquisition pipeline remains robust, with continued focus on companies with up to SEK 100 million in revenue and double-digit margins.

• The company aims to maintain a high acquisition rate and continue organic and acquisitive growth.