Nordic LEVEL Group (LEVEL) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 104.5 MSEK, down 4.0% year-over-year; organic decline was 8.7%.

• Adjusted EBITDA for Q2 was 4.5 MSEK (11.9), and adjusted EBIT was 0.3 MSEK (9.1); reported EBITDA was -0.8 MSEK due to a 5.3 MSEK one-off Corepart earn-out cost.

• Net result for Q2 was -6.3 MSEK (7.1); EPS was -0.03 SEK (0.04).

• H1 2024 net sales grew 5.2% to 194.6 MSEK; organic growth was 0.4%.

• H1 2024 net result was -1.7 MSEK (1.3); EPS -0.01 SEK (-0.03).

Financial highlights

• Q2 adjusted EBITDA margin was 4.3% (10.9%); reported EBITDA margin was negative.

• H1 adjusted EBITDA was 4.6 MSEK (10.1); adjusted EBIT was -3.1 MSEK (3.9).

• Q2 operating cash flow before working capital was 1.8 MSEK (6.3); after working capital, -23.3 MSEK (1.6).

• H1 operating cash flow before working capital was 1.6 MSEK (0.9); after working capital, -28.8 MSEK (-20.8).

• Q2 investments were 1.2 MSEK; H1 investments 1.4 MSEK.

Outlook and guidance

• 2024 EBITDA expected to increase 30-40% over 2023.

• Organic growth for comparable profitable operations targeted at 8-12% for 2024, with higher margins.

• Full effect of restructuring investments expected in Q4, with a strong year-end anticipated.