Esprinet (PRT) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw strong market demand and performance, with net sales up 11% year-over-year to €931.8 million, and leadership consolidated in Southern Europe, especially in high-margin Solutions and Services, which grew 24%.

• Gross sales rose 8%, and the group maintained profitability through strict cost control, offsetting margin pressure in consumer electronics.

• EBITDA Adjusted for Q3 2024 was €11.6 million, flat year-over-year, and for 9M 2024 was €36.3 million, nearly flat year-over-year.

• Net result for 9M 2024 was €6.6 million, a turnaround from a €24.9 million loss in 9M 2023; Q3 net result was €2.0–3.3 million.

• Working capital and net debt management remain priorities, with focus on inventory and supplier payment terms.

Financial highlights

• Q3 2024 net sales reached €931.8 million, up 11% year-over-year; 9M 2024 net sales were €2,781.8 million, up 1%.

• Gross profit for 9M 2024 was €153.8 million, stable year-over-year, with a gross margin of 5.53% (down from 5.61%).

• Net Financial Position was negative €344.3 million at 30 September 2024, deteriorating from negative €260.6 million a year earlier, mainly due to higher working capital and a new warehouse lease.

• EBITDA margin declined from 1.39% to 1.25% in Q3 2024; ROCE was 6.5% at 30 September 2024.

• Cash conversion cycle was 22 days in Q3 2024, 8 days shorter year-over-year and unchanged sequentially.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance is €66–71 million, up from €64.1 million in 2023, assuming double-digit top-line growth and slightly lower margins.

• Q4 is expected to benefit from easier year-over-year comparisons and strong order momentum.

• Management expects to maintain positive trends, focusing on innovation, cost control, and cash generation.

• Analysts forecast mid-single-digit market growth for next year, with ambitions to at least match or outgrow the market.

• ICT market expected to continue outpacing GDP growth, with strong momentum in Infrastructure and AI-driven product innovation.