Nexam Chemical (NEXAM) Q3 2024 earnings summary

Executive summary

• Gross margin reached a record 47% in Q3 2024, up from 43% year-over-year, despite a 4% sales decline due to lower volumes from key Performance Chemical customers.

• EBITDA improved to SEK 1.2 million from SEK 0.7 million in Q3 2023, reflecting ongoing profitability initiatives.

• Company is positioned for growth with stable cash flow, healthy finances, and a focus on expanding market activity and technical development.

• New customer wins and increased activity in PET recycling and structural composites signal future growth opportunities.

Financial highlights

• Q3 2024 net sales were SEK 44.1 million, down 4% year-over-year; gross margin improved to 47%.

• EBITDA for Q3 2024 was SEK 1.2 million, up from SEK 0.7 million in Q3 2023.

• Earnings per share improved to SEK -0.04 from SEK -0.08 year-over-year.

• Cash and cash equivalents at quarter-end were SEK 8.6 million, with cash flow from operations at SEK 0.9 million.

• Operating profit before tax for Q3 2024 was SEK -2.7 million, compared to SEK -3.8 million in Q3 2023.

Outlook and guidance

• Management expects the lower demand from certain large customers to be temporary and anticipates a return to growth, supported by new customer projects and market expansion.

• Ongoing technical development and validation projects in PET recycling and composites are expected to drive future sales.