Vimab Group (VIMAB) Q2 2024 earnings summary

Executive summary

• Net sales increased by 6.9% to 95.4 MSEK in Q2 2024 compared to Q2 2023, and by 26.2% to 162.5 MSEK for the first half year.

• Operating result for Q2 was -2.8 MSEK, down from 6.1 MSEK last year, mainly due to higher costs from new investments in electrification and energy infrastructure.

• The group expects to return to profit in Q3, following its usual seasonal pattern.

• Vimab Group continues to grow, driven by both organic growth and acquisitions, and is well positioned in energy infrastructure megatrends.

Financial highlights

• Q2 EBITDA was 5.8 MSEK, down from 12.1 MSEK in Q2 2023.

• Q2 operating margin was -2.9% (6.8% last year); H1 margin was -12.2% (-3.1% last year).

• Net result for Q2 was -4.4 MSEK (6.3 MSEK last year); H1 net result was -23.0 MSEK (-4.2 MSEK last year).

• Cash flow from operations in Q2 was 13.4 MSEK (-14.2 MSEK last year); H1 was 8.0 MSEK (-10.4 MSEK last year).

• Gross margin improved to 86.4% in Q2 (71.4% last year), mainly due to a higher share of service sales.

Outlook and guidance

• Management expects a return to profitability in Q3, in line with historical seasonal trends.

• Investments in electrification and energy infrastructure are expected to yield long-term benefits.