Catella (CAT) Q3 2024 earnings summary

Executive summary

• Operations span 25 offices in 12 European countries with 500 employees, focusing on Investment Management, Principal Investments, and Corporate Finance.

• One-off restructuring costs of SEK 13 million impacted Q3 results, but EBIT was flat year-on-year despite a SEK 10 million revenue decline.

• Cost efficiencies and liquidity preservation have positioned the group well for recovery, with strategic organizational adaptations and a CEO transition in September.

• SEK 600 million green bond was issued with strong investor demand, and over SEK 300 million of a maturing bond was tendered, further strengthening liquidity.

• Sale of the Polaxis development project is planned for Q4, expected to further boost liquidity.

Financial highlights

• Q3 total income was SEK 383 million, down from SEK 534 million year-over-year; net revenue decreased by SEK 10 million due to lower transaction activity.

• EBIT for Q3 was SEK 19 million (32), with a margin of 5% versus 6% last year; earnings per share at SEK -0.26 (-0.25).

• One-off costs of SEK 13 million were recorded, mainly severance and organizational adjustments.

• Cash and cash equivalents at period end were SEK 869 million, down from SEK 1,001 million, mainly due to repayment of Kaktus junior financing.

• Principal Investments totaled SEK 1.85 billion, up SEK 350 million from last quarter.

Outlook and guidance

• Market fundamentals suggest a slow recovery is underway, with transaction volumes expected to gradually improve into 2025, especially in the Nordics.

• The group is well positioned for a more active market cycle, with strong liquidity and cost base.

• Planned divestments, including Polaxis, are expected to further strengthen liquidity.

• Cost reduction efforts will continue, with further savings expected, but cost increases may follow revenue growth as the market recovers.

• No formal forecasts are published.