Fodelia (FODELIA) Q3 2024 earnings summary

Executive summary

• Net sales from continuing operations grew by 18% in Q3 and 18.3% for January–September year-over-year; group total net sales up 9.9% to €40.1M for Jan–Sep and 5.6% in Q3.

• Operating profit margin in Q3 was 8.1% of net sales; adjusted margin (excluding incentive costs) reached over 10%.

• Feelia drove growth with a 30.3% increase in net sales and 28.9% rise in operating profit for the nine-month period.

• Oikia's comparable net sales declined by 11.9% for January–September, but operating profit more than doubled to €610k.

• Divestment of Perniön Liha and Helsingin Makkaratehdas in May 2024 impacted comparability; adjusted figures exclude non-recurring items.

Financial highlights

• Adjusted EBITDA for January–September was €3.9M (up 13.5% year-over-year); EBITDA including non-recurring items was €5.2M (up 51.9%).

• Adjusted operating profit for the period was €2.35M (5.9% of net sales), up 18.8% year-over-year.

• Adjusted profit for the period was €1.34M; reported profit was €86k due to non-recurring items.

• Adjusted EPS was €0.20; reported EPS was €0.00 for Jan–Sep.

• One-off items from business divestments and long-term incentive program costs (~€280k) impacted results.

Outlook and guidance

• 2024 net sales expected at €50–54M; operating profit margin (excluding non-recurring items) to increase from previous year.

• Strategic focus is on organic growth, supported by acquisitions and innovation in food products.

• Management maintains positive outlook for the rest of 2024 and into 2025.

• Feelia's ready meals and Marjavasu's products are expected to drive future growth in the foodservice segment.

• Oikia aims to expand snack production capacity and improve profitability in e-commerce.