Momentum Group (MMGR) Q3 2024 (Q&A) earnings summary

Executive summary

• Achieved 20% revenue growth in Q3 2024, with 3% organic growth and strong acquisition contributions.

• EBITA margin improved to 12.8% from 12.1% year-over-year, reflecting higher profitability.

• Net profit rose 25% to SEK 55m, and earnings per share increased to SEK 1.05 from SEK 0.85.

• Seven companies acquired year-to-date, adding SEK 250 million in annual revenue and strengthening market position.

• Stable demand in most Nordic markets, with robust aftermarket performance in Sweden and healthy demand in Denmark.

Financial highlights

• Q3 revenue reached SEK 694m (up 20% year-over-year); EBITA increased by 27% to SEK 89m.

• Q3 net profit: SEK 55m (up 25%); EPS: SEK 1.05 (up 24%).

• Jan–Sep revenue: SEK 2,128m (up 30%); EBITA: SEK 252m (up 29%).

• EBITA margin for Jan–Sep was 11.8% (prior year 12.0%).

• Return on working capital (EBITA/WC): 60%; equity/assets ratio: 33%.

Outlook and guidance

• Economic improvement now expected to materialize next year rather than the second half of this year, especially due to challenges in markets like Germany.

• Focus remains on long-term profitable growth, targeting earnings growth above 15% and EBITA/WC above 45%.

• Continued emphasis on profitability, capital allocation for development, and growth via acquisitions.

• Demand expected to remain muted due to global uncertainty and high interest rates.

• Remain optimistic about continued growth and profitability, with a focus on active ownership and employee development.