Alcadon Group (ALCA) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales increased by 2.3% to SEK 390 million, mainly driven by Sweden and the recent acquisition in Ireland, while smaller regions underperformed.

• EBITA for Q3 dropped 36% to SEK 18 million, impacted by unrealized exchange rate losses and higher acquisition expenses.

• Data Centre segment continued to grow across most markets, though at a slower pace, while cabling showed stable, modest growth and broadband showed early signs of recovery except in Germany.

• CEO transition underway: Sonny Mirborn stepped down, Pierre Fors is acting CEO until Fredrik Valentin takes over in January 2025.

Financial highlights

• Q3 net sales: SEK 390.4 million (up 2.3% year-over-year); EBITA: SEK 18.0 million (down 36%).

• EBITA margin was 4.6% (down from 7.3%); gross margin improved to 24.4% (from 23.8%).

• Earnings per share fell to 0.22 SEK from 0.63 SEK; operating cash flow per share was 0.59 SEK (previously 2.77 SEK).

• Operating cash flow was SEK 14 million, down from SEK 60 million.

• January–September net sales: SEK 1,214.8 million (up 6.4%); EBITA: SEK 69.5 million (up 3%).

Outlook and guidance

• Management expects continued growth in the data center segment and gradual improvement in broadband as investment appetite returns.

• Focus remains on integration of recent acquisitions, strengthening cash flow, and improving EBITDA/NWC ratio.

• Financial targets: annual net sales growth of 20%, EBITA margin above 10%, and net debt/EBITDA between 2 and 3 over a business cycle.