Scandinavian ChemoTech (CMOTEC) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly net sales of 1,681 KSEK in Q2 2024, marking the third consecutive quarter of growth, driven entirely by Animal Care.

• Completed a rights issue, raising 9.73 MSEK before costs, improving liquidity.

• Focused on cost control, with non-recurring production and certification expenses impacting liquidity by approximately 450 KSEK.

• Continued registration process for IQwave in India, with expected completion in H2 2024.

• Animal Care expanded internationally, securing orders in Canada, Germany, and the USA.

Financial highlights

• Q2 2024 net sales: 1,681 KSEK (1,181 KSEK in Q2 2023); H1 2024 net sales: 3,026 KSEK (1,235 KSEK in H1 2023).

• Q2 2024 result before tax: -4,104 KSEK (-6,383 KSEK in Q2 2023); H1 2024: -7,307 KSEK (-11,417 KSEK in H1 2023).

• Q2 2024 EPS: -0.23 SEK (-0.48 SEK in Q2 2023); H1 2024 EPS: -0.41 SEK (-0.90 SEK in H1 2023).

• Q2 2024 operating cash flow: -553 KSEK (-5,477 KSEK in Q2 2023); H1 2024: -5,406 KSEK (-10,182 KSEK in H1 2023).

• Equity at period end: 3,387 KSEK (11,127 KSEK in Q2 2023); liquidity: 1,859 KSEK (4,113 KSEK in Q2 2023).

Outlook and guidance

• Registration of IQwave in India on track for completion in H2 2024, potentially opening significant market opportunities.

• Management emphasizes the need for further financing to sustain operations over the next twelve months.

• Focus remains on cost efficiency, international partnerships, and expanding Animal Care's commercial reach.