Northbaze Group (NBZ) Q3 2024 earnings summary

Executive summary

• Q3 marked by the acquisition of Enter Sales & Distribution AB, expanding sales organization and customer base; integration costs impacted results.

• Positive EBITDA achieved despite one-time costs for logistics and personnel related to the acquisition.

• Adiantes delivered 25% growth, driven by both new and existing customers and a broader product range.

• Market conditions were more cautious than expected, with macro factors like war and pandemic affecting demand.

Financial highlights

• Net sales for Q3 2024 reached 48,489 KSEK, up from 28,025 KSEK in Q3 2023; YTD sales at 131,211 KSEK (91,851 KSEK YTD 2023).

• EBITDA for Q3 was 2,078 KSEK (1,705 KSEK Q3 2023); EBIT was -2,368 KSEK (-1,801 KSEK Q3 2023).

• Net result for Q3 was -4,149 KSEK (-2,632 KSEK Q3 2023); YTD net result -4,196 KSEK (-16,455 KSEK YTD 2023).

• Gross margin declined to 41% (65% Q3 2023), mainly due to lower-margin distribution and hardware segments.

• Operating cash flow improved to 1,722 KSEK (-446 KSEK Q3 2023), driven by increased sales and profitability in Adiantes.

Outlook and guidance

• Cost-saving program initiated, leveraging synergies in Sweden, expected to reduce costs by 7 MSEK on a rolling 12-month basis from 2025.

• Lowwi AB expects short-term sales decline due to assortment changes but anticipates a turnaround in 2025.

• No detailed forecasts provided; focus remains on long-term targets: 20% annual growth, 10% EBITDA margin, and >30% equity ratio.