Skako (SKAKO) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 declined 7.6% year-over-year to DKK 53.6m, with Q1–Q3 revenue down 2.5% to DKK 176.9m.

• EBIT before special items fell 40.1% in Q3 to DKK 3.9m and 17.7% for Q1–Q3 to DKK 14.0m.

• Order backlog surged 195% year-over-year to DKK 212.7m, driven by a record DKK 150m order from Morocco.

• Profit for the period dropped 55.4% in Q3 to DKK 1.9m, reflecting lower revenue and higher capacity costs.

• Divestment of Concrete activities completed, focusing the business on vibration technology and sorting solutions.

Financial highlights

• Gross profit margin in Q3 was 30.5% (down 0.5pp year-over-year); EBIT margin before special items was 7.3% (down 3.9pp).

• Earnings per share in Q3 was DKK 0.60, down from DKK 1.36 in Q3 2023.

• Net debt increased to DKK 33.0m, with net debt to EBITDA at 1.2 (up from 0.8 a year ago).

• Cash flow from operating activities was negative DKK 2.0m in Q3, mainly due to increased net working capital.

• Equity at period end was DKK 83.1m, with an equity ratio of 35.3%.

Outlook and guidance

• 2024 revenue expected to develop organically by -2% to +1% (previously 2–5%).

• EBIT before special items for 2024 expected at DKK 24–28m, but in the lower part of the range.

• Strong growth in revenue and EBIT anticipated in 2025–2026 due to the large Morocco order.