DistIT (DIST) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 declined 27.8% year-over-year to 343.8 MSEK, mainly due to weak market demand, product rationalization, and the sale of Sominis.

• EBITA for Q3 was -4.3 MSEK, down from 8.7 MSEK last year; net result was -35.5 MSEK versus -164.1 MSEK.

• Strategic shift from expansion to consolidation continues, focusing on profitability and cost reduction.

• Aurdel, the largest segment, was hit by a cyberattack, impacting EBIT by -4.3 MSEK.

• Cash flow from operations remained positive at 18.8 MSEK in Q3.

Financial highlights

• Q3 revenue: 343.8 MSEK (475.9), -27.8% year-over-year; adjusted for Sominis, -21.9%.

• Q3 gross margin: 24.1% (24.9%); adjusted for one-offs, 25.2%.

• Q3 EBITA: -4.3 MSEK (8.7); Q3 net result: -35.5 MSEK (-164.1).

• 9M 2024 revenue: 1,183.6 MSEK (1,601.9), -26.1%; 9M EBITA: -96.8 MSEK (-12.4); adjusted EBITA: -54.7 MSEK (-8.0).

• 9M net result: -128.6 MSEK (-196.6); EPS: -4.58 SEK (-8.83).

Outlook and guidance

• Full effect of Aurdel’s restructuring expected by Q3 2025.

• Management continues to evaluate further asset sales to strengthen profitability and balance sheet.

• Board authorized to issue new shares up to 20% dilution; new incentive program for management fully subscribed.