New Nordic Healthbrands (NNH) Q2 2024 earnings summary

Executive summary

• Net sales increased by 8.4% in Q2 2024 to 140.9 MSEK and by 5.8% for H1 2024 to 271.1 MSEK, with organic growth across most regions except the Nordics.

• Record sales achieved in Q2 and H1, driven by strong performance in Europe, North America, and Asia, while the Nordics saw a decline.

• Strategic investments in marketing and innovation supported growth, but profitability was impacted by higher costs and weak Nordic performance.

Financial highlights

• Q2 gross margin decreased to 65.4% (from 66.5%); H1 gross margin at 64.4% (from 64.8%).

• Q2 operating income (EBIT) improved to -1.9 MSEK (from -2.6 MSEK); H1 EBIT declined to -5.7 MSEK (from -0.4 MSEK).

• Q2 net income was -4.5 MSEK (from -3.1 MSEK); H1 net income was -7.9 MSEK (from -2.5 MSEK).

• Q2 EBITDA improved to -1.4 MSEK (from -2.2 MSEK); H1 EBITDA at -4.7 MSEK (from 0.4 MSEK).

• Cash flow from operations was 0 MSEK in Q2 (from 11.6 MSEK) and -15.8 MSEK in H1 (from 18.4 MSEK).

Outlook and guidance

• Management expects improved profitability in the Nordics in H2 2024, continued positive trends in the US, and sustained growth in Europe and Asia.

• Price increases and renegotiated supplier contracts are expected to improve gross profit in H2.

• Investments in Switzerland, Spain, and Australia are ongoing, with profitability expected in 2–3 years.