Hernö Gin (HERNO) Q3 2024 earnings summary

Executive summary

• Sales volume increased in Sweden year-over-year, but Q3 revenue and profit declined due to lower international sales.

• Strategic focus remains on expanding international markets, with new Asian markets identified.

• Prestigious awards, including Gin Producer of the Year at ISC 2024, support brand positioning.

• New lighter, recycled Swedish glass bottle launched, reducing costs and environmental impact.

• Visitor activity at the distillery increased compared to last summer, supporting brand engagement.

Financial highlights

• Q3 net revenue was 10.3 MSEK, down 13% from 11.8 MSEK year-over-year; YTD revenue unchanged at 39.4 MSEK.

• Q3 pre-tax profit was 0 MSEK, down from 1.5 MSEK year-over-year; YTD pre-tax profit 7.4 MSEK, down 15%.

• EBITDA for Q3 was 0.2 MSEK, down from 2.0 MSEK; YTD EBITDA 8.4 MSEK, down from 10.1 MSEK.

• Cash flow for Q3 was 2.6 MSEK, up from -12.9 MSEK year-over-year; YTD cash flow 0.3 MSEK.

• Equity at period end was 109.9 MSEK, up from 69.3 MSEK year-over-year.

Outlook and guidance

• Continued focus on international expansion, with new market entries planned, especially in Asia.

• Ongoing investments in brand visibility, sustainability, and visitor experiences to drive future growth.

• Hernö Gin Hotel opening scheduled for February 2025, expected to further strengthen brand and sales.