Pamica Group (PAMICA) Q2 2024 earnings summary

Executive summary

• Net sales rose 30% to 1,166.1 MSEK in Q2 2024, with organic growth of 8%; H1 net sales up 32% to 2,151.2 MSEK, organic growth 5%.

• Adjusted EBITA increased 1% to 107.9 MSEK in Q2, but margin declined to 9% from 12%; H1 adjusted EBITA down 8% to 147.2 MSEK, margin 7% vs 10%.

• Period result was -71.8 MSEK in Q2 and -86.4 MSEK for H1, mainly due to goodwill impairments in Logiwaste and Safe Solutions.

• Cash flow from operations fell 28% in Q2 to 63.3 MSEK but rose 61% in H1 to 169.8 MSEK.

• Goodwill impairments and revaluation of earn-outs led to negative results, but signs of organic growth and strategic acquisitions signal a potential turnaround.

Financial highlights

• Q2 net sales: 1,166.1 MSEK (30% increase YoY); H1: 2,151.2 MSEK (32% increase YoY).

• Adjusted EBITA Q2: 107.9 MSEK (+1% YoY), margin 9% (down from 12%); H1: 147.2 MSEK (-8% YoY), margin 7% (down from 10%).

• Q2 period result: -71.8 MSEK (vs 20.6 MSEK); H1: -86.4 MSEK (vs 4.0 MSEK).

• EPS after dilution: -0.77 SEK in Q2 (vs 0.26), -0.92 SEK in H1 (vs 0.05).

• Cash flow from operations: 63.3 MSEK in Q2 (-28% YoY), 169.8 MSEK in H1 (+61% YoY).

Outlook and guidance

• Management sees early signs of a turnaround, with organic growth and new acquisitions expected to support profitability.

• Continued focus on cost savings and efficiency improvements to drive stable profit growth.

• Acquisition of SKAB (pending approval) expected to contribute positively to growth and margins.