Brødrene A & O Johansen (AOJ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 7.9% year-over-year to DKK 1,326.1m, with organic growth of 1.8% and strong B2C performance; acquired companies contributed six percentage points to growth.

• Both B2B and B2C segments returned to organic growth, with B2C posting its highest Q3 sales on record and fourth consecutive quarter of organic growth.

• Expansion in Stockholm is progressing ahead of expectations, with two new sites planned for H1 2025.

• ISO 27701 certification achieved for IT security; CSRD readiness on track for 2024.

• Integration of acquired businesses is progressing well, with positive contributions realized.

Financial highlights

• Q3 2024 revenue: DKK 1,326.1m (Q3 2023: DKK 1,229m); organic revenue growth was 1.8%.

• Q3 EBITDA: DKK 99.6m–100m (Q3 2023: DKK 95.6m–96m); EBITDA margin 7.5%.

• Gross margin declined from 23% to 21.8% year-over-year, with B2B margins down 2.6 percentage points and B2C margins up 5.6 points.

• EBT was DKK 58.2m, down from DKK 63.3m last year.

• Net interest-bearing debt rose to DKK 1.3–1.334 billion, with financial gearing at 3.9x EBITDA.

Outlook and guidance

• Full-year 2024 guidance maintained: revenue DKK 5,300–5,500m, EBITDA DKK 340–370m, EBT DKK 200–230m.

• Margin pressure expected to persist through Q4, with gradual easing anticipated in 2025 as market activity improves.

• No additional property gains expected beyond the DKK 14m in Q3.