Tura Group (TURA) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 decreased by 8.6% year-over-year to 187.8 MSEK, with EBITDA margin dropping to 1.4% from 4.9% due to lower gross profit and increased costs.

• H1 2024 net sales fell 8.5% to 388.8 MSEK, with EBITDA margin at 1.2% (down from 4.7%), and net result at -5.8 MSEK compared to 7.4 MSEK last year.

• Market conditions remain challenging, with continued cautious demand, especially in Photo & Video and Home Electronics segments.

• The impact of a December 2023 cyberattack has largely been resolved, but increased IT costs and some operational friction persisted into H1 2024.

Financial highlights

• Q2 gross profit was 33.0 MSEK (down from 38.5 MSEK), with gross margin at 17.6% (18.7%).

• Q2 EBITDA was 2.6 MSEK (10.1 MSEK), and net result after financials was -2.8 MSEK (5.7 MSEK).

• H1 gross profit was 60.0 MSEK (82.8 MSEK), gross margin 17.5% (19.5%), EBITDA 4.5 MSEK (20.0 MSEK), and net result -5.8 MSEK (7.4 MSEK).

• Cash flow from operations in Q2 was -11.8 MSEK (35.7 MSEK), and for H1 -15.1 MSEK (56.4 MSEK).

• Equity at June 30, 2024 was 260.1 MSEK (267.9 MSEK); cash and equivalents were 17.7 MSEK (43.5 MSEK).

Outlook and guidance

• Management expects market challenges to persist for several quarters but remains confident in the strategy and aims for growth both organically and via acquisitions.

• Long-term targets include 10–15% annual growth and an average EBITDA margin of about 8%.