Scandinavian Investment Group (SIG) Q2 2024 earnings summary

Executive summary

• Net profit after tax for H1 2024 was DKK 9.5 million, with equity at DKK 190.3 million and a return on equity of 5.0% as of June 30, 2024.

• Investments totaled DKK 279.1 million, split between properties (DKK 164.2m), credit bonds (DKK 70.6m), and equities (DKK 44.3m).

• No new properties acquired in 2024; property operations were below budget due to a vacant lease and higher financing costs.

• Equity was negatively impacted by DKK 7 million from share buybacks.

• July 2024 saw an additional net profit of DKK 1.1 million, bringing YTD profit to DKK 10.6 million and equity to DKK 191.4 million.

Financial highlights

• H1 2024 net profit: DKK 9.5m (H1 2023: DKK 9.8m); EPS: DKK 0.20 (unchanged YoY).

• Return on equity: 5.0% (H1 2023: 5.3%).

• Total assets: DKK 307.4m (H1 2023: DKK 311.6m).

• Equity ratio: 61.9% (H1 2023: 61.4%).

• Cash flow from operations: DKK 5.0m (H1 2023: DKK 6.6m).

Outlook and guidance

• Maintains target of 10-15% annual return on equity, corresponding to after-tax profit of DKK 19-28m for 2024.

• Expects net income of DKK 8.5m from properties, DKK 7.2m from credit bonds, and DKK 5.4m from equities in 2024.

• Anticipates continued market volatility due to geopolitical risks and interest/inflation fluctuations.