CTEK (CTEK) Q3 2024 earnings summary

Executive summary

• Net sales grew 15% organically to SEK 222 million in Q3, marking the second consecutive quarter of organic growth for the group and record performance in the Consumer division.

• Gross margin increased by 4.8 percentage points to 56.4%, with adjusted EBITDA rising to SEK 30 million (13.6%).

• Professional division returned to organic growth for the first time since its formation, with margin improvement though EBITDA remains negative.

• Low Voltage business achieved its fifth consecutive quarter of organic growth, with strong sales in pro chargers and premium products.

• EVSE share of net sales declined to 15% in Q3, reflecting market headwinds in electric vehicle infrastructure.

Financial highlights

• Net sales reached SEK 222 million for the quarter, up 15% year-over-year, with gross margin at 56.4% and adjusted EBITA margin at 13.6%.

• Adjusted EBITDA increased from SEK 18 million to SEK 30 million, and operating profit was SEK 20 million compared to SEK -233 million last year.

• Earnings per share improved to SEK 0.09 from SEK -3.10 year-over-year.

• Cash flow from operating activities was SEK -3 million, mainly due to inventory build-up for Q4.

• Cash and cash equivalents at period end were SEK 98 million, down from SEK 144 million, following SEK 100 million in debt amortization.

Outlook and guidance

• Business remains stable despite tougher year-over-year comparisons and slow EVSE market; focus is on cost base adjustment, profitable organic growth, and product portfolio expansion.

• Management anticipates further expansion in North America following production move to Malaysia to avoid tariffs.

• Low Voltage segment expected to remain resilient even if EV market growth slows.

• No specific Q4 guidance, but stable development and improved processes are expected.

• Final order for discontinued North American EVSE product expected in Q4 at low margin.