Hemply Balance (HMPLY) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 104 TSEK, down 72.6% year-over-year, with a gross margin of 30.0% and a net loss of -279 TSEK.

• For Jan–Sep 2024, net sales totaled 1,049 TSEK, a 32.6% decrease year-over-year, with a gross margin of 74.3% and a net loss of -593 TSEK.

• Sales decline attributed to missing orders from the Japanese distributor; sales expected to fluctuate quarterly.

• Company is undergoing restructuring, focusing on a potential reverse acquisition of Dendrio Solutions SRL.

Financial highlights

• Q3 2024 EBITDA was -278 TSEK, improved from -1,090 TSEK in Q3 2023.

• Cash flow from operations in Q3 2024 was 30 TSEK, compared to -1,077 TSEK in Q3 2023.

• Equity as of September 30, 2024, was 1,185 TSEK.

• No outstanding stock options as of September 30, 2024.

Outlook and guidance

• Sales are expected to remain volatile due to dependency on orders from the Japanese distributor.

• Management is optimistic about the growth potential of Dendrio Solutions SRL if the acquisition is completed.