Synexo Group (SYNEXO) Q3 2024 earnings summary

Executive summary

• Net sales for Q1–Q3 2024 were SEK 9.6m, down 45% year-over-year; operating loss widened to SEK -9.7m from SEK -7.5m.

• Market conditions, including the Hollywood strike and macroeconomic headwinds, significantly impacted customer demand and industry sales.

• LC-Tec launched the world's first electronic variable diffusion filter (EVD) for cine lenses and received industry awards at IBC 2024.

• The company expects sales for 2024 to be significantly below expectations, with recovery now anticipated in 2025/2026.

• Cost-saving measures and a review of operations have been initiated; recapitalization proposal in progress.

Financial highlights

• Net sales Q3 2024: SEK 2.4m (Q3 2023: SEK 4.7m); Q1–Q3 2024: SEK 9.6m (Q1–Q3 2023: SEK 17.6m).

• Operating result Q3 2024: SEK -3.9m (Q3 2023: SEK -2.0m); Q1–Q3 2024: SEK -9.7m (Q1–Q3 2023: SEK -7.5m).

• Net result Q1–Q3 2024: SEK -10.2m (Q1–Q3 2023: SEK -8.0m); EPS: SEK -0.16 (Q1–Q3 2023: SEK -0.27).

• Cash flow from operations Q1–Q3 2024: SEK -12.5m (Q1–Q3 2023: SEK -7.2m); cash at period end: SEK 2.3m.

• Equity at period end: SEK 6.0m; equity ratio: 46%.

Outlook and guidance

• Sales for 2024 expected to be significantly lower than company and market expectations.

• Recovery in sales now anticipated for 2025/2026; losses expected to continue until then.

• No formal forecast provided for coming periods.