Garpco (GARPCO) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased by 5% year-over-year to 130,198 tkr, with EBITDA at 5,631 tkr, down from 11,608 tkr due to absence of last year's energy subsidy and costs for export initiatives.

• Result after tax for Q3 was -2,055 tkr, compared to 3,403 tkr last year; nine-month result after tax was 6,551 tkr, down from 12,025 tkr.

• Export market demand strengthened, especially in UK and USA, while Swedish construction-related demand remained weak.

• Several acquisitions completed, including Oscarssons Möbel, Roflex, and CA Precision Tools; IPO in May raised 25.4 mkr for growth and export initiatives.

Financial highlights

• Q3 2024 net sales: 130,198 tkr (123,516 tkr in Q3 2023); nine-month net sales: 467,918 tkr (465,101 tkr in 2023).

• Q3 EBITDA: 5,631 tkr (11,608 tkr); nine-month EBITDA: 31,883 tkr (36,564 tkr).

• Q3 result after tax: -2,055 tkr (3,403 tkr); nine-month result after tax: 6,551 tkr (12,025 tkr).

• Net debt at period end: 61,429 tkr; available liquidity including credit: 47,063 tkr.

• Investments in tangible assets: 13,095 tkr; in subsidiaries: 10,804 tkr.

Outlook and guidance

• Export market expected to remain strong, with ongoing investments in UK and USA anticipated to become profitable in 2025.

• Demand from Swedish construction sector remains subdued; industrial and offshore sectors show positive trends.

• Group's diversified business model and strong financial position seen as strengths in a weak economic climate.