Softronic (SOF) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 increased to SEK 206.8m from SEK 202.3m, with organic growth of about 2%. Pre-tax profit rose to SEK 18.7m from SEK 17.3m, and net profit after tax reached SEK 14.6m, up from SEK 13.5m.

• For H1 2024, revenue was SEK 436.9m (SEK 435.5m), with net profit after tax at SEK 32.6m (SEK 33.5m).

• Market conditions were cautious early in the year due to weak economic climate, especially in industry and public sector, but sentiment improved as the year progressed.

• Long-term demand for digital services remains strong, and the company maintains a positive outlook.

Financial highlights

• Q2 EBITDA increased to SEK 21.5m (SEK 20.4m), with an EBITDA margin of 10.4% (10.1%).

• Q2 pre-tax profit margin rose to 9.0% (8.6%). H1 pre-tax profit margin was 9.5% (9.8%).

• Cash flow from operating activities in Q2 was SEK 26.9m (SEK 4.4m); H1 cash flow was SEK 42.6m (SEK 22.9m).

• Equity at period end was SEK 246.5m, with a solidity of 59%.

• Dividend of SEK 71.1m paid in Q2.

Outlook and guidance

• Improved industry sentiment noted after a cautious spring; long-term digitalization trends support continued growth.

• The company remains selective in recruitment and cost-conscious to adapt to market conditions.