Novedo (NOVEDO) Q3 2024 earnings summary

Executive summary

• Net sales grew by 13.6% in Q3 2024 to SEK 717.1 million, with organic growth of 7.5%.

• EBITA rose 37.5% to SEK 69.4 million, and EBIT increased 48.4% to SEK 55.0 million in Q3.

• For Jan–Sep 2024, net sales increased 11.9% to SEK 2,172.8 million, with 2.7% organic growth.

• Diversification across three business segments and geographies provided resilience in a tough market.

• Significant refinancing and capital raising activities completed, including new bond and convertible issues.

Financial highlights

• Q3 EBITA margin improved to 9.7% (from 8.0%), and EBIT margin to 7.7% (from 5.9%).

• Cash flow from operating activities in Q3 was SEK 55.9 million (up from SEK 0.8 million).

• Jan–Sep EBITA margin was 10.1% (9.6%), and EBIT margin 8.1% (7.6%).

• Profit after tax for Jan–Sep was SEK -66.9 million (improved from SEK -80.4 million).

• Earnings per share for Jan–Sep was SEK -4.59 (vs. SEK -5.30 last year).

Outlook and guidance

• Market expected to remain uncertain and challenging in H1 2025, with demand varying by segment and geography.

• Updated financial targets: >30% annual average net sales growth (2024–2028), >10% adjusted EBITA margin, <3.5x net debt/EBITDA.

• Company well-equipped for long-term development due to strong market positions and recent financing.