Navigo Invest (NAVIGO) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 increased to 162.7 Mkr from 119.2 Mkr year-over-year, driven by consolidation of recent acquisitions and strong organic growth in Chemgroup and Calormet.

• EBITDA for Q2 was 22.9 Mkr, down from 33.8 Mkr, reflecting a lower margin due to a strong comparison quarter in Vinga.

• Net income for Q2 was 27.5 Mkr, compared to 51.5 Mkr in Q2 2023; total comprehensive income was 15.0 Mkr.

• NAV per share rose to 9.73 SEK at June 30, 2024, up 1.77% from Q1 but down 15.76% since year-end.

• Strategic shift from acquisition-driven growth to focus on profitability and cash flow, with cost reductions and operational efficiency measures implemented.

Financial highlights

• Rolling 12-month revenue reached 587.2 Mkr, up from 207.9 Mkr year-over-year (excluding one-offs).

• Q2 EBITDA margin was 14.1%, down from 28.4% in Q2 2023.

• Earnings per share for Q2 were 0.32 SEK (0.31 SEK after dilution), compared to 1.21 SEK (1.12 SEK after dilution) in Q2 2023.

• Group equity at period end was 1,517.6 Mkr, with a solid equity ratio of 79%.

• Cash flow from operations for H1 2024 was -25.1 Mkr, compared to -7.6 Mkr in H1 2023.

Outlook and guidance

• Focus for the remainder of 2024 is on improving margins and cash flow, with continued optimism for Chemgroup and expectations of market recovery for Vinga and Nordisk Bergteknik.

• Management expects operational improvements and cost measures to yield positive effects in coming quarters.