Motion Display (MODI) Q3 2024 earnings summary

Executive summary

• Nine-month revenue decreased 5% to 20.06 MSEK compared to the same period last year, with a net result of -0.08 MSEK, an improvement from -0.51 MSEK.

• Q3 saw a sharp decline, with revenue down 52% year-over-year to 2.83 MSEK and a net loss of -2.51 MSEK.

• Order intake and backlog both declined significantly in Q3, with order intake at 2.5 MSEK and backlog at 2.0 MSEK.

• Liquidity remains strained due to prepayments to suppliers and slow customer payments, despite a stronger balance sheet.

Financial highlights

• Nine-month EBITDA improved to 2.00 MSEK from 1.68 MSEK year-over-year; EBIT was 0.42 MSEK versus -0.26 MSEK.

• Q3 EBITDA was -1.87 MSEK, down from 0.54 MSEK; EBIT was -2.40 MSEK compared to -0.09 MSEK last year.

• Gross margin for the nine months was 59%, up from 57% last year; Q3 gross margin dropped to 35% from 59%.

• Net cash flow for the nine months was 1.70 MSEK, up from 0.03 MSEK.

• Cash at period end was 1.73 MSEK, up from 0.13 MSEK last year.

Outlook and guidance

• Management notes a tough start to autumn with lower-than-expected order intake and a shrinking delivery window before Chinese New Year.

• Positive sentiment remains among sales staff, and a new 1.8 MSEK order for Q1 2025 delivery was secured after the period.

• External financing may be considered if liquidity challenges persist.