Storskogen Group (STOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were SEK 7,991–8,000 million, with adjusted EBITA/EBITDA of SEK 783 million and margin improving to 9.8% from 8.7% in Q3 2023, nearing the 10% target.

• Positive organic sales and EBITA growth achieved across all business areas, driven by divestments, operational efficiency, and cost control.

• Divestment of nine low-performing/unprofitable business units completed, supporting margin expansion and profitability.

• S&P affirmed BB credit rating, upgrading outlook to stable; successful bond refinancing extends major maturities to 2027.

• Cash conversion remained strong at 99% on a rolling 12-month basis.

Financial highlights

• Adjusted EBIT/EBITA grew 8–19% year-over-year to SEK 783 million, with margin improving to 9.8% from 8.7%.

• Adjusted EPS after dilution increased 35% to SEK 0.13.

• Profit for Q3 rose 31% to SEK 248–256 million; net profit for Jan–Sep impacted by one-off divestment charges.

• Cash flow from operating activities in Q3 was SEK 453 million; rolling 12-month cash flow at SEK 2.9 billion.

• Leverage ratio stable at 2.6x; equity/assets ratio at 46%.

Outlook and guidance

• Q4 is expected to be seasonally stronger, with continued focus on organic EBITA growth, cash flow, and leverage improvement.

• No significant bond maturities until 2027, providing operational flexibility.

• Market recovery anticipated to be gradual, with further support expected from interest rate cuts.

• Capital allocation for acquisitions will be prioritized once organic profit growth and leverage improve.