Solteq - Focus on financing
Solteq had released preliminary Q2 figures ahead of the earnings report and the comparable net sales of EUR 13.6m (-1.5% y/y) and EBIT of EUR 0.0m came as no surprise.
- Net sales in Q2 were EUR 13.4m (EUR 14.3m in Q2/23), a decline of 6.1% y/y and 1.5% in comparable terms.
- The operating profit and adj. operating profit in Q1 amounted to EUR 0.0m respectively (EUR 6.3m/-2.0m in Q2/23).
- Retail and commerce: revenue in Q2 amounted to EUR 10.0m (Q2/23: EUR 10.8m) vs. Evli EUR 10.2m. Revenue declined by 1.2% in comparable terms driven by the demand situation. The adj. EBIT was EUR 0.4m (Q2/23: EUR -0.4m) vs. Evli EUR 0.3m.
- Utilities: Revenue in Q2 amounted to EUR 3.4m (Q2/23: EUR 3.4m) vs. Evli EUR 3.2m. The adj. EBIT was EUR -0.4m (Q2/23: EUR -1.7m) vs. Evli EUR -0.3m.
- Guidance for 2024 (reiterated): Solteq expects the comparable revenue (2023: EUR 54.2m) to grow and the operating result to be positive.
- During the review period Solteq completed the earlier announced cost-savings program to improve profitability in the Retail and Commerce segment’s Commerce & Data business unit and Group Administration, with annual cost savings expected to amount to approx. EUR 3.5m, of which a third of the total annual savings is expected to be visible in H2.
- Solteq commenced a written procedure to amend its notes (EUR 23m) due Oct 1st, 2024. Key points of the sought consent include an extension of maturity by 24 months, increase of coupon rate from six percent to ten percent and a gradual increase in the redemption price from 100 percent to 104 percent. Consent fee of 1.75 percent offered.