Avensia (AVEN) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was 91.7 MSEK, up 1% year-over-year, with stable demand but cautious customer investments in a subdued market.

• Operating profit for Q3 was 5.9 MSEK (6.4% margin), down from 8.6 MSEK (9.4%) last year, mainly due to profit-sharing provisions and a higher share of commission income.

• Net income for Q3 was 3.7 MSEK, compared to 6.8 MSEK in Q3 2023.

• Cost base has been significantly reduced since 2023, supporting improved profitability over the nine-month period.

• Cash flow and liquidity strengthened, with 24.6 MSEK in cash and 54.6 MSEK in available liquidity at quarter-end.

Financial highlights

• Q3 revenue: 91.7 MSEK (91.0 MSEK Q3 2023); 9M revenue: 306.9 MSEK (305.7 MSEK 9M 2023).

• Q3 operating profit: 5.9 MSEK (8.6 MSEK); 9M operating profit: 23.0 MSEK (-5.6 MSEK).

• Q3 net income: 3.7 MSEK (6.8 MSEK); 9M net income: 15.8 MSEK (-5.4 MSEK).

• Q3 EPS: 0.10 SEK (0.18 SEK); 9M EPS: 0.43 SEK (-0.15 SEK).

• Q3 cash flow: 6.7 MSEK (-2.4 MSEK); 9M cash flow: 9.0 MSEK (1.9 MSEK).

Outlook and guidance

• Market sentiment weakened in Q3, with customers remaining cautious, especially in Norway where investments are low.

• Avensia expects structurally increasing demand in its markets over time, but notes risk of global recession.

• Financial targets remain: 10% annual organic growth, 10% short-term and 15% long-term operating margin.