| April - June 2024 | January - June 2024 | |
| Net sales SEK 66.3m (62.4), an increase of 6% compared to same quarter previous year | Net sales SEK 118.3m (112.9), an increase of 5% compared to previous year | |
| Gross profit decreased to SEK 11.0m (21.8) with a gross margin of 16.6% (34.9) Operating income before items affecting comparability SEK -39.5m (-31.7) Items affecting comparability amounted to SEK +30m and relates to a government loan converted to grant SEK +30m | Gross profit decreased to SEK 35.5m (40.9) with a gross margin of 30.0% (36.2) Operating income before items affecting comparability SEK -68.8m (-57.9) Items affecting comparability amounted to SEK +30m and relates to a government loan converted to grant SEK +30m | |
| Operating income SEK -9.5m (-31.7) | Operating income SEK -38.8m (-57.9) | |
| Income after tax SEK -8.6m (-22.2) | Income after tax SEK -33.7m (-46.3) | |
| Operating cash flow SEK -50.6m (-6.6) | Operating cash flow SEK -11.9m (5.0) | |
| Earnings per share (basic and diluted) SEK -0.33 (-0.52) | Earnings per share (basic and diluted) SEK -1.00 (-0.97) | |
Significant events during the second quarter | ||
| - Order signed for the supply of fuel cell systems to O.S. Energy which expands PowerCell's offering into the segment of smaller commercial and leisure vessels - Government loan converted into grant which generated a positive income of SEK 30m - Launch of Marine System 225, an evolution of PowerCell's marine product offering - Loan of SEK 50m signed to finance PowerCell's continued expansion - CFO Torbjörn Gustafsson will leave the group at the end of 2024 | ||
| Significant events after the end of the reporting period | ||
| - Order signed for delivery of fuel cell systems to a leading European OEM manufacturer of propulsion systems to the marine cruise industry | ||
CEO Richard Berkling comments:
Preparing for growing OEM markets
Although PowerCell showed moderate growth in the second quarter, our recently announced order from a leading European OEM manufacturer of propulsion systems to the marine cruise industry indicates that the energy transition is underway in critical sectors such as aviation, marine and industrial Power Generation. OEM manufacturers are now beginning to take a lead in the transition, pushing their industries towards commercial applications. We also see more national and supranational initiatives aimed at stimulating the continued expansion of the hydrogen industry. With our new financing through Nordea, supported by European Investment Fund's "InvestEU Sustainability Guarantee", we have good conditions to meet the strong demand we see and take on OEM orders.
In the quarter, net sales increased 6 percent to SEK 66.3 million, which is lower than we would like to see and is a consequence of the somewhat softer market that we reported in the first quarter. Still, demand for our offering is strong and growing, driven by increased focus on OEM sales where our Industrialized Innovation offering serve our customers well with the combination of industrialized core products that are adapted and integrated into the OEM solution.
The gross margin amounted to 16.6 percent (34.9) in the second quarter, negatively impacted by inventory revaluation and a less favorable product mix.
Since the beginning of 2024, we have been working to secure working capital funding due to the transition from the earlier phase of project sales to more market-driven growth through long-term OEM contracts. During the second quarter we signed a loan with Nordea of SEK 50 million. The loan is secured through a credit guarantee from the European Investment Fund's "InvestEU Sustainability Guarantee". This new financing means that we can enter into larger customer commitments and expand future serial deliveries.
Positive reception of our new Marine System 225
The marine market is still an innovation driven market and although we have what we believe is the best marine fuel cell system we constantly work to improve customer value. With the launch in the quarter of the Marine System 225 we have increased power and improved operating efficiency in this powerful, yet compact and advanced power generation system.
Continuous improvement is important in a technology shift and we build on our experience and customer feedback from all segment - on land, at sea and in the air. With the diverse applications, demanding yet collaborative customers, we have extensive data to refine how our products create value in different customer applications.
Marine System 225 is attracting great interest and we have recently received a first order from a leading European OEM manufacturer of propulsion systems to the marine cruise industry.
In the quarter, we signed an order from O.S. Energy of two 100 kW marine fuel cell systems for power generation for the Transship II sustainable vessel project. This order represents a strategic expansion of our offering to the smaller commercial and leisure vessel segments, including both retrofits and newbuilds, and shows that our technology is ready for wider uptake.
State incentives speed up industry development
We are in a transition time from early stages of project sales to long-term OEM contracts that are more complex in nature. The speed of transition is also affected by the development of supporting value chains as well as the funding to push infrastructure projects into Final Investment Decision, (FID). Although operating in a changing market we see more state initiatives which accelerate the transition as hydrogen-electric solutions and fuel cell systems are an important part of the solution to reach an emission-free society. It is good for the development of the industry that we see government initiatives in the US, the EU, Japan and Australia, among others, which aim to stimulate and speed up the development of the hydrogen industry. In the short term, we see that above all new customers are affected by the macroeconomic uncertainty and at the same time we are in a transition phase to larger commercial projects.
The megatrend for an emission-free society and the demand we are facing make me confident about PowerCell's positioning with a well industrialized production process and product portfolio to manage the transition from the early stages of a project driven explorative market to a commercially driven market with long-term OEM deliveries, concludes CEO Richard Berkling.
Link to the report: https://powercell.se/en/reports-and-presentations
Webcasted presentation: An online presentation will take place today at 10:00 am CEST. The presentation can be listened to online or by calling in. The presentation will be followed by a question-and-answer session. The presentation is held in English.
If you wish to participate online, please use the link https://ir.financialhearings.com/powercell-group-q2-report-2024. You can ask questions in writing at the online presentation.
If you wish to participate in the telephone conference, you can register using the link https://conference.financialhearings.com/teleconference/?id=50048561. Following registration, you will receive telephone numbers and a conference ID to log in to the conference. You can ask questions verbally at the telephone conference.
Next report: Interim report third quarter 2024 Thursday 17 October
The English version is an in house-translation. In case of any discrepancy, the Swedish text will prevail.
For further information, please contact:
Richard Berkling
CEO
Phone: +46 31 720 36 20
Email: richard.berkling@powercellgroup.com
Torbjörn Gustafsson
CFO
Phone: +46 701 86 69 86
Email: torbjorn.gustafsson@powercellgroup.com
About PowerCell
PowerCell is a world leader in hydrogen electric solutions with unique fuel cell stacks and systems. With decades of experience, we use our expertise to accelerate the transition to an emission-free, more sustainable world. We target industries such as aviation, marine, off-road, on-road and stationary power generation. With our cutting-edge products we help our customers to reach net zero emissions already today.
We are headquartered in Gothenburg, Sweden with sales globally. PowerCell is listed on Nasdaq Stockholm.
To read more about our products and services, visit powercellgroup.com.
This information is information that PowerCell Sweden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-07-18 07:30 CEST.
