Qbrick (QBRICK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was 6.4 MSEK, down 12% year-over-year, mainly due to a tougher market climate.

• EBITDA improved to -1.2 MSEK from -2.1 MSEK year-over-year, driven by cost savings and a changed product mix.

• Gross margin increased to 80.9% from 77.1% year-over-year, reflecting lower production costs.

• New contracts signed with OK ekonomisk förening, a major Norwegian bank, and Grønlandsbanken, strengthening market position in the Nordics.

• Cost savings program of 12 MSEK annually completed, with full effect expected in H2 2024.

Financial highlights

• Net sales for H1 2024 were 13.8 MSEK, down 12% from 15.7 MSEK year-over-year.

• H1 2024 EBITDA was -2.0 MSEK, an improvement of 2.5 MSEK from -4.5 MSEK year-over-year.

• Cash position at quarter-end was 5.5 MSEK, down from 11.5 MSEK year-over-year.

• EPS for Q2 2024 was -0.05 SEK (Q2 2023: -0.11 SEK); H1 2024 EPS was -0.09 SEK (H1 2023: -0.22 SEK).

• Equity ratio at quarter-end was 65.9%.

Outlook and guidance

• Full-year positive EBITDA target postponed to 2025 due to lower sales.

• Market conditions expected to remain challenging in H2 2024; structural growth options under evaluation.

• Full effect of cost savings program to be realized in H2 2024.