B2 Impact (B2H) Q3 2024 earnings summary

Executive summary

• Solid collection performance in Q3 2024, with unsecured collections at 108% and secured at 133% of forecasts, despite lower overall cash collections year-over-year.

• Operating and personnel expenses declined 6.5–7% year-over-year, supporting net profit growth and operational scalability.

• Major refinancing completed, reducing blended cost of debt to 6.6% and supporting increased investment capacity.

• Dividend for 2023 increased to NOK 1.3 per share, with NOK 0.7 paid in June and NOK 0.6 in October; YTD EPS matches full-year 2023.

• CEO transition announced: Erik Johnsen to step down, Trond Kristian Andreassen appointed as new CEO effective December 1, 2024.

Financial highlights

• Q3 2024 cash collections were NOK 1,326m, down 11% year-over-year; cash EBITDA at NOK 1,012m, down 13%.

• Adjusted net profit for Q3 2024 was NOK 122m, up 46% from NOK 84m in Q3 2023; EBIT margin improved to 47%.

• Portfolio investments in Q3 totaled NOK 455m, with full-year invested and committed amount at NOK 1.4bn.

• Operating expenses down 6.5% and personnel costs down 9% year-over-year; FTEs reduced by 15%.

• Non-recurring items of NOK 31m booked in Q3, mainly severance pay; NOK 222m in refinancing-related costs impacted net financials.

Outlook and guidance

• Investment target for 2024 maintained at NOK 2.5–3bn, supported by a strong and growing pipeline.

• Q4 expected to be the most active quarter for investments, with several large one-off transactions and forward flow deals extending into 2025.

• Further reductions in interest costs anticipated, with full impact from Q1 2025.

• No need to issue new debt to meet investment targets due to strong liquidity and cash flow.

• Dividend capacity for 2024 supported by adjusted EPS of NOK 1.3 year-to-date.