Enento Group (ENENTO) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 were EUR 36.8 million, down 2.4% year-over-year at comparable exchange rates, with YTD net sales at EUR 112.6 million, a 3.9% decline year-over-year, mainly due to weak consumer credit markets in Sweden and Finland.

• Adjusted EBITDA for Q3 2024 was EUR 13.8 million (down 6% year-over-year), with a margin of 37.5%; YTD adjusted EBITDA was EUR 40.3 million (margin 35.8%).

• Efficiency program surpassed its EUR 10 million run-rate savings target, supporting profitability and ongoing IT infrastructure consolidation.

• Free cash flow in Q3 2024 was strong at EUR 10.7 million, with YTD free cash flow at EUR 23.6 million, supporting investment and shareholder returns.

• Dividend for 2024 totals EUR 1.00 per share, with the second EUR 0.50 installment to be paid in November.

Financial highlights

• Adjusted EBITDA margin was 37.5% in Q3 2024 (down 1.4 percentage points year-over-year); YTD margin was 35.8%.

• Q3 2024 adjusted EBIT was EUR 10.9 million (margin 29.7%), and Q3 operating profit (EBIT) was EUR 7.2 million.

• Earnings per share for nine months: EUR 0.49 (down from EUR 0.64); Q3 basic EPS: EUR 0.18.

• Gross investments in Q3 2024 were EUR 2.2 million; capital expenditure for nine months: EUR 7.8 million.

• Net debt at end of Q3 2024 was EUR 136.8 million, with net debt/adjusted EBITDA at 2.5x and equity ratio at 59.7%.

Outlook and guidance

• Revenue expected to decline for full year 2024 compared to 2023, but H2 decline anticipated to be less than H1, with demand expected to stabilize.

• Cost control remains a priority to maintain profitability amid macroeconomic uncertainty.

• Market environment for Consumer Credit information expected to stabilize in H2 2024.