Humble Group (HUMBLE) Q3 2024 earnings summary

Executive summary

• Achieved 9% net sales growth in Q3 2024 to MSEK 1,978, with organic growth of 10.3% and improved profitability across all segments.

• Completed listing change to Nasdaq Stockholm main market and communicated new financial targets at a Capital Markets Day.

• Strong cash generation and continued deleveraging, positioning for further growth and profitability in 2025.

• High demand persisted, supported by new distribution agreements and international expansion initiatives.

Financial highlights

• Net sales reached 1,978 MSEK, up 9% year-over-year, with organic growth of 10.3%.

• Gross margin improved to 30.7%–31%, up 1.5 percentage points quarter-on-quarter, with gross profit at MSEK 608.

• Adjusted EBITDA margin reached 7.8%–9% for the quarter, with adjusted EBITA at MSEK 154, up 11% year-over-year.

• Cash flow from operating activities was MSEK 142 in Q3, with cash flow before working capital changes at SEK 119 million.

• Net debt/Adjusted EBITDA reduced to 2.9x from 3.3x at year-end 2023.

Outlook and guidance

• Strong outlook for Q4 and 2025, with continued focus on organic growth, strategic investments, and margin improvement.

• New medium-term targets: average net sales growth of at least 15% per year, EBIT margin of at least 10%, and net debt/EBITDA not exceeding 2.5x.

• Investments in 2024 will not need to be scaled at the same level in 2025.

• Emphasis on maintaining cost control while investing for growth.