Seafire (SEAF) Q2 2024 earnings summary

Executive summary

• Net sales declined 8% year-over-year to SEK 264 million in Q2 2024, with the decrease entirely organic and mainly due to weak demand at Borö-Pannan.

• Adjusted EBITA fell to SEK 18 million (margin 7%), while EBITA rose to SEK 25 million (margin 9%) due to positive items affecting comparability.

• Operating profit (EBIT) was SEK -16 million, impacted by a SEK 35 million goodwill impairment at Borö-Pannan.

• Cash flow from operating activities was strong at SEK 40 million, supported by effective working capital management.

• Excluding Borö-Pannan, sales and earnings were stable compared to the prior year.

Financial highlights

• Q2 net sales: SEK 264 million (-8% year-over-year); H1 net sales: SEK 482 million (-11%).

• Q2 adjusted EBITA: SEK 18 million (margin 7%); H1 adjusted EBITA: SEK 24 million (margin 5%).

• Q2 EBITA: SEK 25 million (margin 9%); H1 EBITA: SEK 30 million (margin 6%).

• Q2 EBIT: SEK -16 million (vs. SEK 15 million prior year), due to SEK 35 million goodwill impairment.

• Q2 EPS: SEK -0.65; H1 EPS: SEK -0.77.

• Q2 cash flow from operations: SEK 40 million (vs. SEK 6 million prior year); H1: SEK 39 million (vs. SEK -24 million prior year).

Outlook and guidance

• Market conditions and demand remain weak, with no signs of improvement expected in Q3.

• Q3 started with lower demand than the previous year; the company is prepared to act if the economy weakens further.

• Short-term priority is to support earnings and cash flow improvements in subsidiaries and position for macro recovery.