Seamless Distribution Systems (SDS) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was SEK 60.2 million, down 17.3% year-over-year, mainly due to the phase-out of SDD; EBITDA increased 1.5% to SEK 19.7 million, with a margin of 32.8%.

• Net income for Q2 was SEK -2.6 million, and EPS was SEK -0.17; cash flow for the period was SEK 0.9 million.

• For H1 2024, revenue was SEK 115.8 million (down 18.5%), EBITDA SEK 41.8 million (up 25.9%), and net income SEK -2.2 million.

• The company is focusing on its core SDS business, increasing recurring revenues and cost savings, and has secured its largest-ever contract in Bangladesh.

Financial highlights

• Q2 2024 revenue: SEK 60.2m (Q2 2023: SEK 72.8m); H1 2024: SEK 115.8m (H1 2023: SEK 142.2m).

• Q2 2024 EBITDA: SEK 19.7m (Q2 2023: SEK 19.4m); H1 2024: SEK 41.8m (H1 2023: SEK 33.2m).

• Q2 2024 net income: SEK -2.6m (Q2 2023: SEK 0.1m); H1 2024: SEK -2.2m (H1 2023: SEK -4.7m).

• Q2 2024 cash flow: SEK 0.9m (Q2 2023: SEK -10.8m); H1 2024: SEK 6.7m (H1 2023: SEK -5.5m).

• EBITDA margin improved to 32.8% in Q2 and 36.1% in H1.

Outlook and guidance

• H1 2024 performance aligns with the 2024 forecast, considering the major Bangladesh order closed in Q3.

• The order pipeline is strong for H2 2024, with expectations of increased recurring revenues and positive cash flow after financial costs.