Creturner Group (CRET) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 94% year-over-year to 6.8 Mkr, with EBITA at 4.0 Mkr, but operating income turned negative at -1.5 Mkr due to a 12 Mkr write-down in the environmental technology segment.

• The company focused on reducing debt and developing its high-performance computing (HPC) business, while environmental technology commercialization faced delays, especially in the US.

• The digital segment showed strong growth and volatility, with increasing demand for AI-related computing, while the environmental segment is positioned for future EU-driven demand.

Financial highlights

• Q3 2024 net sales: 6.8 Mkr (3.5 Mkr Q3 2023); EBITA: 4.0 Mkr (2.7 Mkr); operating margin: -22% (4%).

• Net income per share Q3: -0.02 kr (0.01 kr); cash position: 0.4 Mkr (0.2 Mkr).

• Year-to-date operating income after depreciation: -11 Mkr (-8.2 Mkr YTD 2023); net income per share YTD: -0.14 kr.

• Parent company Q3 net sales: 6.3 Mkr (3.5 Mkr); operating margin: -12% (-64%).

Outlook and guidance

• The company expects certification completion to enable increased revenues in the near term.

• Cautious optimism for digital segment expansion; further write-downs in environmental tech possible if political uncertainty persists.