Green Landscaping Group (GREEN) Q3 2024 earnings summary

Executive summary

• Net sales grew 8% in Q3 2024 to SEK 1,539 million, with organic growth of 3% and acquisitions contributing significantly.

• EBITA increased 1% in Q3 to SEK 130 million, with a margin of 8.4%, slightly down from 9.0% last year.

• Five acquisitions completed or announced in 2024, expanding presence in Norway, Germany, and Finland.

• Strong cash flow from operating activities at SEK 121 million in Q3, offsetting weaker earlier quarters.

• Management team restructuring announced to support growth and complexity.

Financial highlights

• Net sales for Jan–Sept 2024 were SEK 4,579 million, up 10% year-over-year; organic growth was 2%.

• Rolling twelve months sales up 7%, with 2% organic and 7% from acquisitions.

• EBITA for Jan–Sept rose 3% to SEK 364 million, margin at 7.9% (down from 8.5%).

• Q3 EPS at SEK 0.96, up from SEK 0.84 year-over-year.

• Order backlog stable at SEK 8,008 million.

Outlook and guidance

• Acquisition pipeline remains strong, with ambition to complete 8–10 investments in 2024, especially in Germany, Switzerland, and Austria.

• Management expects continued focus on profit margins, cost efficiency, and stable growth.

• No major spillover costs expected from the concluded loss-making Swedish contract in Q4.

• Financial leverage expected to decrease over time through operating cash flow.

• Market conditions remain weak and competitive, with construction firms entering landscaping.