Stemmer Imaging
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Stemmer Imaging (S9I) investor relations material

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Stemmer Imaging Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary13 Aug, 2024

Executive summary

  • Revenue declined significantly in Q1 and H1 2024 due to weak demand across all end markets, with no single root cause, but order intake improved sequentially and bookings rebounded after a downturn in 2H 2023.

  • Gross margin remained strong, with resilience in medical, logistics, recycling, sports, and entertainment sectors, and strong design-in wins supporting future projections.

  • Strategic focus on value-added solutions, efficiency improvements, and cost reductions led to structural savings and maintained gross margin resilience.

  • Acquisition of Phase 1 Technology Corp. in the U.S. completed in May 2024, strengthening North American presence and supplier relationships.

  • Entered investment agreement with MiddleGround Capital in July 2024, with a voluntary public takeover offer at €48.00 per share announced.

Financial highlights

  • Q1 2024 revenue was €27.5m (down from €40.4m in Q1 2023); H1 2024 revenue was €58.3m (H1 2023: €78.4m); Q2 2024 revenue was €30.8m (Q2 2023: €38.0m).

  • Order intake reached €33.1m in Q1 2024 and €35.2m in Q2 2024; book-to-bill ratio was 1.2 in H1 2024.

  • Gross margin improved to 39.9% in Q1 2024 (Q1 2023: 39.1%) and 40.0% in H1 2024 (H1 2023: 39.6%).

  • EBITDA was €4.1m in Q1 2024 (14.9% margin), €9.1m in H1 2024 (15.6% margin), both below prior year levels.

  • Operating cash flow was strong at €9.4m in Q1 2024 and €15.5m in H1 2024, with net cash position at €44.7m and cash and cash equivalents at €30.3m as of 30 June 2024.

Outlook and guidance

  • Full-year 2024 revenue guidance maintained at €140–157m, with EBITDA forecast at €24–31m, excluding special charges from the MiddleGround Capital transaction.

  • Guidance assumes continued demand, order backlog processing, and economic improvement by late Q3, with a catch-up effect expected in the second half of 2024.

  • Anticipates stepwise recovery in demand and billings, with full potential development expected in 2025; upside from North American expansion not included in current prognosis.

  • Uncertainty remains regarding international capital market distortions and their impact on recovery.

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