Inission (INISS) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales declined 9.1% to SEK 468 million, with organic sales down 16% and AXXE contributing 33 MSEK; order intake increased by 6 MSEK to 464 MSEK.

• EBIT for Q3 was SEK 25.8 million (down from 44.3 million), with EPS at 0.6 SEK (1.4 SEK); EBIT margin was 5.5% (8.6%).

• LTM sales just below SEK 2.2 billion, with EBIT margin at 6.2% versus 7.2% last year.

• Inventory value reduced by 29 MSEK in Q3 and by 130 MSEK since Q3 last year (excluding AXXE).

• Cost reduction initiatives are ongoing, with personnel costs lower and further cuts expected in Q1 and Q2 next year.

Financial highlights

• Gross margin for Q3 improved to 27.5% (26.7%) due to stabilized material prices and price increases.

• EBITDA margin for Q3 was 10.5% (12.2%), with full-year group margin expected above 6%, revised down from 7%.

• Cash flow from operations for Q3 was -39.5 MSEK (7.8 MSEK), impacted by cessation of factoring and early COVID loan repayment, totaling SEK 160 million in negative effects year-to-date.

• Net debt at period end was -526 MSEK (-538 MSEK), with equity ratio at 37.8% (36.2%).

• Net income for Q3 was 13.2 MSEK (27.9 MSEK); for Jan–Sep, 64.4 MSEK (82.3 MSEK).

Outlook and guidance

• Full-year sales target revised to SEK 2.1–2.2 billion from SEK 2.4 billion due to market slowdown.

• EBITA margin target for 2024 revised from 7% to 6%; mid-term targets for 15% annual growth and 9% EBITDA margin remain unchanged.

• Management expects the downturn to bottom out in Q4, with growth resuming in H2 2025.

• Cost base expected to align with lower demand by Q1–Q2 next year.