Umida (UMIDA) Q2 2024 earnings summary

Executive summary

• Net sales excluding excise taxes fell 25% year-over-year in Q2 2024, mainly due to lost Systembolaget distribution and a distributor's IT attack, but gross margin improved sharply to 27% from 19% last year.

• The company divested its majority stake in The Great Swedish Järn AB, generating a capital gain of SEK 2.3M, and launched new functional beverages under the Joluca brand with strong retail uptake.

• Ekobryggeriet maintained its leading 33% market share in premium tonic and received international awards, while Joluca's new functional drinks are expected to generate SEK 10–12M in net sales in late 2024.

Financial highlights

• Q2 2024 net sales (excl. excise) were SEK 16.0M (SEK 21.5M in Q2 2023); H1 2024 net sales were SEK 29.2M (SEK 34.0M in H1 2023).

• Q2 gross profit was SEK 4.3M (up 3% YoY); gross margin rose to 27% (19%).

• Q2 EBITDA was SEK -1.9M (SEK -0.8M YoY); H1 EBITDA improved to SEK -1.5M (SEK -2.2M YoY).

• Q2 net result after tax was SEK -1.5M (SEK -2.3M YoY), aided by the SEK 2.3M gain from the Järn AB sale.

• Operating cash flow for H1 was SEK -7.2M (SEK -3.1M YoY); cash at period end was SEK 2.3M.

Outlook and guidance

• Joluca functional drinks are forecast to generate at least SEK 10–12M in net sales in the last four months of 2024, with expectations for further growth in 2025.

• The company aims to continue improving gross margin and may divest additional assets to accelerate growth.