Elektroimportoren (ELIMP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NOK 407 million, up 1.7% year-over-year, with like-for-like sales down 1.1%.

• Gross margin improved to 36.7% from 35.3%, driven by a shift toward B2C, price adjustments, and higher B2C share.

• Adjusted EBITDA rose to NOK 44 million from NOK 29 million, reflecting margin management and cost control, excluding a NOK 13 million solar inventory write-down.

• Net profit was NOK 33 million, up from NOK -6 million last year, mainly due to a NOK 44 million earn-out release and a NOK 13 million solar inventory write-down.

• B2C and online sales led growth, while B2B and solar segments remained challenging.

Financial highlights

• Gross profit increased to NOK 150 million from NOK 141 million last year.

• Reported EBITDA was NOK 30 million (NOK 28 million last year); adjusted EBITDA NOK 44 million (NOK 29 million last year), with NOK 13 million solar inventory write-down.

• OPEX reduced to NOK 105 million from NOK 112 million; OPEX to sales ratio improved to 25.8% from 28.0%.

• Cash and available credit facilities totaled NOK 217 million, with net interest-bearing debt at NOK 151 million.

• Earnings per share (EPS) NOK 0.66 (NOK -0.24 last year).

Outlook and guidance

• Market conditions remain challenging, especially in B2B, but sales growth continues in both Norway and Sweden at the start of Q4.

• The new Skøyen store in Oslo opened in November and is expected to outperform the average store in the coming years.

• B2C is expected to continue outgrowing B2B, particularly in Q4 due to seasonal campaigns.