Midsummer (MIDS) Q2 2024 earnings summary

Executive summary

• Net sales increased by 11% to 12,219 TSEK in Q2 2024 compared to Q2 2023, driven by a 24% rise in solar panel sales despite a challenging market.

• Operating loss improved to -60,534 TSEK from -65,293 TSEK year-over-year; EPS was -0.39 SEK versus -0.82 SEK.

• Major milestones include the completion of the Italian factory, new partnerships, and the selection of Flen for a planned 200 MW megafactory.

• Cost reduction initiatives and process improvements led to a 10% decrease in production costs and a 45 MSEK reduction in operating expenses in H1 2024.

• Received 93 MSEK in grants from Italian authorities for the Bari factory; EU Innovation Fund support for the Flen factory remains.

Financial highlights

• Q2 2024 net sales: 12,219 TSEK (up 11% YoY); H1 2024 net sales: 20,444 TSEK (down from 23,039 TSEK YoY).

• Q2 2024 operating loss: -60,534 TSEK (improved from -65,293 TSEK YoY); EBITDA: -16,188 TSEK (improved from -65,293 TSEK YoY).

• Q2 2024 net loss: -73,131 TSEK (worse than -56,126 TSEK YoY); EPS: -0.39 SEK (-0.82 SEK YoY).

• Cash flow in Q2 2024: 82,121 TSEK (139,530 TSEK YoY), positively impacted by Invitalia grant.

• Equity ratio at quarter-end: 23.65% (down from 46.46% YoY); cash position: 95,843 TSEK.

Outlook and guidance

• Ongoing certification of the Italian factory expected within months; limited production already started.

• Flen megafactory project continues despite Swedish grant rejection; alternative financing under review.

• Focus on scaling sales, cost control, and leveraging EU grants for expansion.

• Long-term optimism based on unique technology, sustainability profile, and untapped market for lightweight panels.