Scandbook (SBOK) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 11.7% year-over-year to SEK 107.2m, with EBITDA at SEK 12.9m and EBIT at SEK 7.6m, both slightly below last year due to higher costs from delivery challenges.

• For Jan–Sep 2024, net sales rose 3.7% to SEK 303.2m, EBITDA reached SEK 33.1m, and EBIT SEK 17.2m, all up from the prior year.

• Net income for Q3 was SEK 6.6m (down from SEK 7.8m), and for Jan–Sep SEK 14.0m (up from SEK 12.8m); EPS for Q3 was SEK 0.97 and for Jan–Sep SEK 2.07.

• Q3 saw strong sales but profitability was pressured by extra costs to maintain delivery times; normalization is expected in Q4.

Financial highlights

• Q3 2024 net sales: SEK 107.2m (SEK 96.0m), EBITDA: SEK 12.9m (SEK 13.0m), EBIT: SEK 7.6m (SEK 8.4m), net income: SEK 6.6m (SEK 7.8m).

• Jan–Sep 2024 net sales: SEK 303.2m (SEK 292.3m), EBITDA: SEK 33.1m (SEK 29.9m), EBIT: SEK 17.2m (SEK 15.3m), net income: SEK 14.0m (SEK 12.8m).

• Cash flow for Q3: SEK -12.4m (SEK -7.6m); cash at period end: SEK 39.2m (SEK 42.1m).

• Investments in Q3: SEK 5.4m, mainly in digital equipment; Jan–Sep investments: SEK 14.8m.

• Dividend of SEK 15.2m paid to shareholders during Jan–Sep.

Outlook and guidance

• Q4 is expected to see normalized capacity utilization after Q3's delivery challenges.

• EU's delayed EUDR implementation will postpone cost increases for the industry into 2025.

• Continued strong demand for printed books in Germany and the Netherlands presents future opportunities.