Elanders (ELAN) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached SEK 3,598 million, up from SEK 3,253 million in Q3 2023, with 3.9% organic growth driven by improved demand in Europe and Asia, while North America remained soft.

• Adjusted EBITA for Q3 rose to SEK 237 million (6.6% margin), up from SEK 211 million (6.5%), mainly from Supply Chain Solutions.

• Operating profit benefited from a SEK 139 million one-off gain related to Kammac earn-out revaluation.

• Acquisitions of Bishopsgate Newco Ltd (UK) and remaining shares in Bergen Logistics (US) strengthened logistics capabilities.

• North America remained weak, especially in Fashion, but signs of stabilization and improved prospect conversion appeared late in the quarter.

Financial highlights

• Q3 2024 net sales: SEK 3,598 million (Q3 2023: SEK 3,253 million); adjusted EBITA: SEK 237 million (Q3 2023: SEK 211 million); adjusted EBITA margin: 6.6% (6.5%).

• Q3 2024 EBITDA: SEK 699 million (Q3 2023: SEK 500 million); YTD EBITDA: SEK 1,666 million (YTD 2023: SEK 1,399 million).

• Q3 2024 result after tax: SEK 188 million (Q3 2023: SEK 66 million); adjusted EPS: SEK 1.31 (Q3 2023: SEK 1.83).

• Operating cash flow for Q3: SEK 279 million (Q3 2023: SEK 528 million); YTD: SEK 1,436 million.

• Net debt at quarter-end: SEK 8,925 million, up from SEK 7,022 million last year; net debt/EBITDA (excl. IFRS 16): 3.7x.

Outlook and guidance

• Gradual improvement in demand expected in coming quarters, though market uncertainty and demand swings persist.

• Cost optimization measures ongoing, including warehouse consolidation and subletting to address overcapacity.

• Optimism for Q4, especially in print, with expectations of seasonal strength.

• No formal forecast for 2024 was provided.

• New customer acquisitions contributed to positive growth in Europe; North America and UK showing early signs of improvement.