Q2 2024 Mips AB Earnings Call Transcript
Key Points
- Mips AB (FRA:7M1) reported a strong quarter with 31% organic growth.
- Gross profit increased by 37%, with a gross margin of 72.9%, up 3 percentage points from last year.
- The company saw good development across all categories and regions, particularly in the bike and snow segments.
- Mips AB (FRA:7M1) continues to increase market share and penetration globally.
- The company has a strong cash position with SEK266 million in cash and no loans.
- Market conditions remain challenging globally, particularly in the retail environment.
- Volume development in the safety category was slower than expected despite good interest in the US and European markets.
- The construction market in Europe is very challenged, impacting the safety segment.
- The company had to hold back on some recruitments for one or two quarters.
- There is uncertainty in the market, and some brands have very thin balance sheets, which could affect growth.
Good morning, everyone. My name is Max Strandwitz, and I am the CEO of Mips. With me today, I also have Mips CFO, Karin Rosenthal, and we will walk you through the Q2 results presentation. And if we start with the first quarter and the key highlights, it was a strong quarter with 31% organic growth. Year-to-date, organic growth is now at 14%.
We saw good development in all categories and in all regions, which is, of course, very good to see in these times. The interest in implementing Mips safety system in new helmets remained high. You see that also in the project revenues in the quarter and we continue to increase the market share and the penetration of Mips throughout the world.
No change of previous assumption of a gradual recovery of growth in 2024, and that, of course, continue also into the second quarter and we remain confident in our long-term strategy and our financial targets.
If we then start with sport, we saw strong development in bike and snow with 33%, but also good performance in the little smaller subcategory
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