Mutares (MUX) Q3 2024 earnings summary

Executive summary

• Operates in 13 countries with 14 offices, focusing on Europe and expanding internationally in Chicago, Shanghai, and Mumbai, with a diversified portfolio of 35 companies across four segments and annualized revenues exceeding €7bn.

• Business model centers on acquiring loss-making companies, executing turnarounds, and harvesting value through exits, with a typical holding period of 3–6 years and a target ROIC of 7-10x.

• High transaction activity in Q3/Q4 2024, with ten acquisitions and two exits, including the acquisition of Natura in Poland and divestments of Repartim and Mobilitas, supporting revenue growth.

• Successfully listed Steyr Motors, retaining a 71% stake, and placed a €135 million Nordic bond.

Financial highlights

• Group revenues increased 14% year-over-year to €3.89bn for Q3 2024 YTD, with a target of €1 billion annual growth.

• Group EBITDA for Q3 2024 YTD was €170.3m, but Adjusted EBITDA was -€16.5m, reflecting losses from new acquisitions and seasonality.

• Net income for Mutares Holding was €53.5m for Q3 2024 YTD, benefiting from the exit of Frigoscandia; consolidated net income for the group was -€197.3m.

• Total assets increased to €4.60bn as of September 30, 2024, with equity of €897m and financial liabilities of €1.08bn.

• Operating income included a €7 million provision release related to a past transaction.

Outlook and guidance

• FY 2024 guidance confirmed, with targeted group revenues of €5.7–6.3bn and holding net income of €108–132m; long-term targets reaffirmed, aiming for €10 billion group turnover and €200 million holding profit.

• Minimum dividend raised to €2.00 per share, with potential for performance-based bonus.

• Sell-side activities expected to increase in FY 2025, targeting exit proceeds of over €200m.

• Management remains fully committed to the growth strategy and global expansion.