Lammhults Design Group (LAMM) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales declined 10% year-over-year to 188.7 MSEK, reflecting weak market conditions and a lower order backlog at the start of the quarter.

• EBIT for Q3 was 4.4 MSEK (2.3% margin), down from 12.2 MSEK (5.8%) last year, mainly due to weak sales and underutilized capacity.

• Order intake rose 14% year-over-year in Q3, with positive trends in both Office and Library Interiors, resulting in a higher order backlog at quarter-end.

• A strategic business review was completed, and a new management team was in place since June.

• A cost-reduction and restructuring program was initiated post-quarter, targeting an annual EBIT improvement of 30–40 MSEK, impacting 20–25 positions and including asset write-downs of 30 MSEK and restructuring reserves of 20 MSEK in Q4.

Financial highlights

• Q3 net sales: 188.7 MSEK (down from 209.7 MSEK); YTD net sales: 609.8 MSEK (down from 700.4 MSEK).

• Q3 EBIT: 4.4 MSEK (2.3% margin); YTD EBIT: -18.8 MSEK (-3.1% margin).

• Q3 EPS: 0.01 SEK (1.15 SEK); YTD EPS: -2.61 SEK (-0.25 SEK).

• Q3 order intake: 195.7 MSEK (+14% year-over-year); order backlog up 17.6% to 195.7 MSEK.

• Investments in tangible assets for 9M: 12.5 MSEK; cash flow from operations for 9M: -3.2 MSEK.

Outlook and guidance

• The restructuring program aims for a sustainable business and annual EBIT improvement of 30–40 MSEK from 2025.

• Asset write-downs of 30 MSEK and 20 MSEK in restructuring costs will impact Q4 EBIT.

• Targeting an EBIT margin of 8–10% by 2026 through cost reductions and operational improvements.