Fram Skandinavien (FRAM) Q3 2024 earnings summary

Executive summary

• Net asset value (NAV) as of Oct 31, 2024, was 131 mSEK (36 SEK/share), a 343% premium to share price but down 4% month-on-month.

• Core holdings made progress toward breakeven; Carmudi reached EBITDA breakeven in September.

• Portfolio focus remains on profitability as investor sentiment in Southeast Asia favors EBITDA over GMV or revenue growth.

• Group operational losses from continuing operations reduced to -0.9 mSEK in Q3 2024 from -3.3 mSEK in Q3 2023.

• Cash balance increased by 1 mSEK due to Carmudi dealer collections and FX effects.

Financial highlights

• Q3 2024 group revenues were 1,345 KSEK, down from 4,744 KSEK in Q3 2023, mainly due to Carmudi's shift to more profitable transactions.

• Gross profit for Q3 2024 was 1,019 KSEK; adjusted EBIT was -1,116 KSEK, improved from -3,746 KSEK in Q3 2023.

• Loss from continuing operations in Q3 2024 was -903 KSEK, down from -3,337 KSEK year-over-year.

• Earnings per share for Q3 2024 was -0.3 SEK, compared to -0.9 SEK in Q3 2023.

• Cash and bank balance at period end was 8,452 KSEK; total equity was 7,049 KSEK.

Outlook and guidance

• Unlikely to find buyers for core holdings before breakeven and profitable growth are achieved.

• Continued focus on driving ventures toward profitability and shifting away from unprofitable GMV transactions, especially for Carmudi.

• Market GMV multiples of peers have declined; profitability is a medium-term priority.