Kakel Max (KAKEL) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 31,035 tkr, down from 33,350 tkr in Q3 2023; net result after tax was -2,050 tkr compared to 390 tkr last year.

• January–September 2024 net sales totaled 106,328 tkr (118,008 tkr in 2023); net result after tax was -2,435 tkr (1,914 tkr in 2023).

• One-time closure costs of about 1 mkr for the Sollentuna store impacted results; Täby store opened in September with good initial customer flow.

• Acquisition of a well-known store in Eskilstuna to take place from November 1.

Financial highlights

• Q3 operating result was -1,876 tkr (689 tkr in Q3 2023), with an operating margin of -6.0% (2.1%).

• EPS for Q3 was -0.67 kr (0.13 kr); for Jan–Sep, -0.80 kr (1.71 kr).

• Cash flow from operations improved to 1,171 tkr from -1,040 tkr in Q3 2023.

• Net debt at period end was 10,463 tkr (7,439 tkr in 2023); equity ratio was 57.1% (58.2%).

Outlook and guidance

• Swedish economy has grown only marginally in 2024; recovery is expected to be slow and uncertain due to global and domestic factors.

• Riksbank's interest rate cut is expected to stimulate market activity.