Wonderful Times Group (WTG) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was 15.8 MSEK, down 8% year-over-year, reflecting continued challenges in the toys and baby products market.

• EBITDA for Q2 was -1.0 MSEK, impacted by increased costs for new hires in sales and marketing.

• The company remains optimistic for H2 2024 due to increased order intake and strategic investments during the downturn.

Financial highlights

• Q2 2024 revenue: 15.8 MSEK (17.1 MSEK in Q2 2023); H1 2024 revenue: 33.8 MSEK (35.1 MSEK in H1 2023).

• Q2 EBITDA: -1.0 MSEK (-0.3 MSEK in Q2 2023); H1 EBITDA: -0.5 MSEK (-1.0 MSEK in H1 2023).

• Net income after tax for Q2: -0.8 MSEK (0.6 MSEK in Q2 2023); H1: -0.4 MSEK (-1.4 MSEK in H1 2023).

• Cash flow from operations in Q2: -3.8 MSEK (-3.1 MSEK in Q2 2023); H1: 0.0 MSEK (-1.4 MSEK in H1 2023).

• Earnings per share Q2: -0.17 SEK (-0.13 SEK in Q2 2023); H1: -0.09 SEK (-0.31 SEK in H1 2023).

Outlook and guidance

• Focus for 2024 remains on sales and marketing, with new hires made in these areas.

• Management is cautiously optimistic for the second half of 2024, expecting improved sales as the market recovers.

• Long-term financial targets: 10% average annual sales growth, EBITDA margin of at least 10%, and equity ratio of at least 40%.