Duell (DUELL) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached €37.9 million, up 0.6% year-over-year, with comparable currency growth of 2.7%.

• Adjusted EBITA for Q3 was €3.2 million (8.4% margin), down from €3.8 million (10.1%) last year.

• Net debt reduced by €21.5 million year-over-year, with leverage ratio improving to 4.5x.

• Growth supported by own brand/category expansion and new third-party brands; cycling showed recovery, motorcycle demand steady, boating demand low.

• Management changes include new CEO Magnus Miemois (June 1), incoming CFO Caj Malmsten (August 19), and organizational renewal.

Financial highlights

• Gross margin in Q3 was 24.9%, up from 24.7% year-over-year.

• Adjusted EBITDA margin for Q3 was 9.1%, down from 10.8% last year.

• Earnings per share for Q3 was -€0.003, compared to €0.02 last year.

• Operating free cash flow in Q3 was €3.2 million, down from €12.2 million last year.

• Net working capital at €57.7 million, €4.1 million lower than previous year.

Outlook and guidance

• Market uncertainty and weak consumer demand expected to persist through 2024; no net sales outlook provided.

• Focus remains on profitability improvement and working capital optimization.

• Adjusted EBITA expected to improve from previous year; medium-term targets: net sales €200–300 million, EBITA margin at least 13%, leverage 2–3x.