Sto SE & Co (STO3) Q3 2024 earnings summary

Executive summary

• Turnover declined 6.6% year-over-year to EUR 1,237.4 million for the first nine months of 2024, with earnings well below the previous year's level due to difficult market conditions, adverse weather, and increased competition.

• The 2023 fiscal year saw a 3.9% decrease in turnover to EUR 1,718.0 million, but forecasted turnover and earnings targets were achieved, with a gross profit margin improvement to 53.9%.

• Workforce reduced by 116 employees year-over-year, now totaling 5,787 as of September 2024.

Financial highlights

• EBIT for 2023 was EUR 126.5 million (-2.5% year-over-year), EBT EUR 127.4 million (-0.7%), and EAT EUR 85.8 million (-3.7%).

• Cash flow from operating activities in 2023 rose to EUR 170.9 million from EUR 95.3 million in 2022.

• For the first half of 2024, turnover fell 7.1% to EUR 795.7 million, EBIT dropped 49.7% to EUR 29.3 million, and EBT decreased 47.7% to EUR 30.3 million.

• Return on sales (EBT) for 2023 was 7.4%, forecasted at 3.2%–4.4% for 2024.

• Investments in 2023 totaled EUR 46.6 million; for the first nine months of 2024, EUR 23 million, down 10.5% year-over-year.

Outlook and guidance

• 2024 turnover forecast revised down to EUR 1.60 billion, with EBIT expected between EUR 50–68 million and EBT between EUR 52–70 million.

• Previous guidance for 2025 and medium-term targets for 2027 were cancelled; updated forecasts will be provided by April 2025.

• No catch-up effects expected in Q4; further declines anticipated in Italy, France, and China.

• Management highlights significant risks from weather, economic cycles, and geopolitical developments, but also sees opportunities in energy-efficient refurbishment and government support programs.