Precio Fishbone (PRCO) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were SEK 45.4m, down 15.1% year-over-year; H1 2024 sales were SEK 92.6m, down 17.6% year-over-year.

• EBITA for Q2 2024 was SEK 3.0m (margin 6.5%), up from SEK -1.6m; H1 EBITA was SEK 7.7m (margin 8.4%), up from SEK -0.5m.

• Net income for Q2 2024 was SEK 2.4m (vs. SEK -1.5m); H1 net income was SEK 6.4m (vs. SEK -0.6m).

• Cash flow from operations in Q2 was SEK 4.3m (vs. SEK 7.0m); H1 cash flow was SEK 10.9m (vs. SEK 16.2m).

• Ordinary dividend of SEK 1.30 per share and extra dividend of SEK 8.70 per share paid in Q2.

Financial highlights

• Q2 2024 EBITA margin improved to 6.5% from -3.0% year-over-year; H1 margin at 8.4% from -0.5%.

• Earnings per share after tax for Q2 was SEK 0.26 (vs. SEK -0.17); H1 EPS was SEK 0.70 (vs. SEK -0.07).

• Total cash flow in Q2 was SEK -119.2m, impacted by SEK 91.8m in dividends.

• Equity at June 30, 2024 was SEK 157.8m (down from SEK 278.9m at year start); equity ratio at 70% (vs. 82%).

• Cash and equivalents at period end were SEK 24.1m (vs. SEK 167.4m at year start).

Outlook and guidance

• Market for system development remains challenging with low demand and price pressure; further impact expected in Q3.

• Cost adjustments, including staff reductions, expected to have full effect in Q4.

• Optimism for 2025 with new customer wins and strengthened sales resources.

• SaaS segment shows positive trend with new NGOonline customers and increased Kaskelot/Valghalla usage during EU elections.