KH Group (KHG) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 (pro forma) were EUR 85.7 million, down 5.9% year-over-year; operating profit was EUR 3.3 million, also down from EUR 4.1 million.

• For January–September 2024 (reported IFRS), net sales reached EUR 253.2 million, up from EUR 161.0 million due to consolidation changes; operating profit was EUR 0.8 million, a turnaround from a EUR -17.5 million loss.

• Net profit for the period was EUR -3.3 million, an improvement from EUR -12.1 million year-over-year.

• The group divested its holdings in HTJ, recognizing a capital gain of EUR 2.6 million in Q3.

• Strategic focus remains on building around KH-Koneet and divesting other business areas.

Financial highlights

• Pro forma EBITDA for Q3 2024 was EUR 11.4 million (13.3% margin), down from EUR 12.5 million (13.7%).

• Earnings per share (undiluted and diluted) for January–September 2024 were EUR -0.02, up from EUR -0.15.

• Equity per share at period end was EUR 1.30, down from EUR 1.39.

• Cash and cash equivalents stood at EUR 11.6 million at period end.

• Gearing was 195.6% (120.6% excluding lease liabilities); equity ratio was 24.4%.

Outlook and guidance

• Updated 2024 guidance: pro forma net sales of EUR 340–360 million and operating profit of EUR 4–7 million, reflecting lower than expected performance in Indoor Group.

• Medium-term objective is to become an industrial group centered on KH-Koneet, with continued divestment planning for other business areas.