BALCO GROUP (BALCO) Q3 2024 earnings summary

Executive summary

• Net sales rose 31% in Q3 to SEK 331 million and 11% for Jan–Sep to SEK 1,031 million, mainly driven by acquisitions, especially in Finland.

• Order intake surged 111% in Q3 to SEK 285 million and 49% for Jan–Sep, with strong contributions from acquired Finnish companies.

• Adjusted operating profit (EBITA) was SEK 16–17 million in Q3 (margin 5.0%), with EPS at SEK -0.03; order backlog increased 25% to SEK 1.3 billion.

• Structural changes included integrating subsidiaries in Finland and Sweden, and selling the Norwegian subsidiary.

• New energy-saving solutions and patents are being developed, supporting the green transformation strategy.

Financial highlights

• Net sales YTD up 11% to SEK 1,031 million; acquired growth 43%, organic growth -8%, currency effect -4%.

• Adjusted EBITA YTD was SEK 52 million (margin 5.0%), down from SEK 74 million (margin 8.0%) year-over-year.

• Gross margin declined to 16.2% in Q3 (from 21.1%) and 18.4% for Jan–Sep (from 21.1%) due to lower margins in acquired units and low occupancy.

• Operating cash flow was SEK -1 million in Q3 but improved to SEK 81 million for Jan–Sep.

• EPS YTD was SEK 0.12, down from SEK 1.81.

Outlook and guidance

• Customer activity is increasing from a low base, especially in renovation, but net sales and profit will be affected by previously lower order intake and project lead times.

• Focus remains on order intake, cash flow, cost control, and selective project intake to protect margins.

• No expectation of a rapid market rebound; gradual improvement anticipated.