Röko (RÖKO) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months of 2024 reached SEK 4,513m, up 9% year-over-year, with Q3 sales at SEK 1,447m, driven by acquisitions and organic growth, partially offset by negative FX effects.

• Adjusted EBITA for the first nine months was SEK 706m, up 15–17% year-over-year, with margin improving to 20%.

• Net profit for the period was SEK 534m, up 40% from SEK 381m in the first nine months of 2023, aided by a one-time reversal of deferred consideration.

• Röko added four new companies in 2024, including first entries into Germany and Belgium, bringing the total to 27 business units.

• Operating profit for the nine months was SEK 706m, up 17% year-over-year.

Financial highlights

• Organic growth was 2% year-over-year for the first nine months of 2024.

• Return on capital employed improved to 14% from 12% year-over-year.

• Cash flow from operations was SEK 763m for Jan–Sep, up from SEK 668m year-over-year.

• Financial net debt including minority debt rose 9% to SEK 2,931m; net debt/EBITDA RTM was 2.2x.

• Earnings per share increased 29% to SEK 35.97 for the nine months.

Outlook and guidance

• Financial targets include annual EBITA growth (excluding acquisitions), EBITA margin above 15%, and net debt/EBITDA below 3.0x.

• Dividend policy is to distribute 0–20% of net profit; no dividend was paid for fiscal year 2023.

• Röko maintains a strong financial position, enabling continued acquisition-driven growth.

• The M&A market remains volatile with fewer high-quality opportunities expected in the near term.