Reka Industrial (REKA) Q2 2024 earnings summary

Executive summary

• Reka Industrial's turnover for January–June 2024 was EUR 14.7 million, reflecting the sale of Reka Cables in April 2023, which significantly reduced group turnover and profitability year-over-year.

• The Rubber segment is now the sole industrial business, facing challenging market conditions with lower order volumes and shortened lead times.

• Strategy work is ongoing, with a focus on long-term growth, productivity, and profitability, supported by investments in production capacity.

• Cash and cash equivalents remain strong at EUR 26.7 million, mainly invested in low-risk instruments.

Financial highlights

• Group turnover was EUR 14.7 million, down from EUR 78.1 million year-over-year due to the Reka Cables divestment.

• Group EBITDA was EUR -0.1 million (EUR 38.1 million in 2023, which included a EUR 31.0 million gain from the Reka Cables sale).

• Result for the period was EUR -0.2 million, compared to EUR 34.8 million a year earlier.

• Earnings per share were EUR -0.04, down from EUR 5.81 year-over-year.

• Net cash from operating activities was EUR -0.4 million, compared to EUR 1.7 million in the prior year.

Outlook and guidance

• The challenging market situation for the Rubber segment is expected to persist through the rest of 2024.

• The company will continue to emphasize productivity, profitability, and investments for long-term growth.

• Funds will remain primarily in low-risk investments and short-term deposits during the ongoing strategy process.