Momentum Group (MMGR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 20% year-over-year to SEK 694 million, with 3% organic growth and strong acquisition contributions; EBITA margin improved to 12.8%, the highest for an individual quarter.

• Stable business climate in the Nordic region, with robust demand in Sweden's aftermarket and healthy demand in Denmark's pharma and green tech sectors; Finland remained cautious.

• EBITA increased by 27% year-on-year to SEK 89 million, with profitability and cash flow supporting financial flexibility and future growth.

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

• Positive outlook maintained despite global uncertainties, with focus on profit growth, profitability, and employee development.

Financial highlights

• Q3 revenue: SEK 694 million (up 20% year-over-year); 15% from acquisitions, 3% organic growth.

• Q3 EBITA: SEK 89 million (up 27%); EBITA margin 12.8% (12.1%).

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

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

• Cash flow from operating activities Jan–Sep: SEK 214 million (up from 159 million).

Outlook and guidance

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

• Continued emphasis on acquisitions, internal development, and capital allocation to support profit and profitability.

• Management expects continued muted demand due to global uncertainty, high interest rates, and delayed economic recovery.

• Financial flexibility supported by SEK 781 million in available cash and credit facilities.