Motion Display: Strong gross margin driving another profitable quarter - Emergers
MODI reported Q2’24 sales largely in line with last year, at SEK 7.4m compared to SEK 7.6m in Q2’23. The gross margin increased by 6ppt due to a higher number of projects and fewer displays per project, resulting in a net profit of SEK 0.4m. Component build-up, however, turned cash flow negative for the quarter. The global retail index has sharply recovered, up 27% year-to-date, providing tailwinds for in-store marketing investments. The share has held up well following the +100% gain after the Q1’24 report. With continued support for a fair value of SEK 1.9-2.3, we believe the share has more potential, although investors should brace for some short-term softness in Q3’24.
Länk till analysen i sin helhet: https://www.emergers.se/motion_l24/