New Bubbleroom Sweden (BBROOM) Q2 2024 earnings summary

Executive summary

• Net sales grew 6.6% year-over-year in Q2 2024 to SEK 134.8 million, with record gross margin of 69.1%.

• Adjusted EBITDA rose 90.9% to SEK 6.3 million, reflecting strong operational execution and business initiatives.

• Strategic initiatives, including a new loyalty program and digital returns, contributed to higher sales and operational efficiency.

• Continued focus on own brands, which made up 71.5% of the assortment in Q2.

• Inventory levels reduced to SEK 67.4 million, supporting improved cash flow and working capital.

Financial highlights

• Q2 gross profit increased 8.9% to SEK 93.2 million; share of own brands at 71.5%.

• Q2 adjusted EBITDA: SEK 6.3 million (3.3 million); Q2 EBIT: SEK 3.8 million (0.3 million); Q2 net income: SEK 3.7 million (-0.0 million).

• For Jan–Jun, net sales up 4.3% to SEK 234.4 million, gross margin at 67.4%.

• Adjusted EBITDA for Jan–Jun increased to SEK 1.3 million from SEK 0.3 million.

• Q2 operating cash flow after investments: SEK 28.4 million (27.7 million); H1: SEK 17.3 million (22.5 million).

Outlook and guidance

• Continued focus on profitability, cash flow, and execution of business initiatives.

• Management expects continued positive effects from strategic initiatives, including the new loyalty program and digital returns process.

• Ongoing development in marketing, branding, and sustainability to support future growth.

• Ongoing focus on assortment optimization and operational improvements to sustain growth and profitability.