Ortelius International (ORTIN) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were 80.6 MSEK, down 5% year-over-year; H1 2024 net sales reached 125.2 MSEK, up 2% from H1 2023.

• Q2 gross margin declined to 9.9% from 12.8% last year; H1 gross margin was 9.7% versus 11.6% in H1 2023.

• Q2 EBITDA was 1.6 MSEK (3.9 MSEK last year); H1 EBITDA was -0.3 MSEK (1.0 MSEK last year).

• Q2 operating income surged to 19.7 MSEK (1.9 MSEK last year) due to a 20 MSEK reversal of a previous write-down; H1 operating income was 15.5 MSEK (-3.0 MSEK last year).

• Q2 net income was 19.0 MSEK (1.3 MSEK last year); H1 net income was 13.6 MSEK (-4.4 MSEK last year).

Financial highlights

• Q2 net sales: 80.6 MSEK (84.4 MSEK last year); H1 net sales: 125.2 MSEK (123.3 MSEK last year).

• Q2 gross margin: 9.9% (12.8% last year); H1 gross margin: 9.7% (11.6% last year).

• Q2 EBITDA: 1.6 MSEK (3.9 MSEK last year); H1 EBITDA: -0.3 MSEK (1.0 MSEK last year).

• Q2 operating income: 19.7 MSEK (1.9 MSEK last year); H1 operating income: 15.5 MSEK (-3.0 MSEK last year).

• Q2 EPS: 15.9 SEK (0.00 SEK last year); H1 EPS: 11.4 SEK (-0.01 SEK last year).

Outlook and guidance

• July sales are expected to be in line with July last year.

• Positive macroeconomic signals (inflation, interest rates) support a more favorable market for recreational vehicles in the medium term.

• Uppland subsidiary is reducing growth ambitions for 2024 due to slower inventory financing, aiming to resume growth in 2025.