TagMaster (TAGM) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 2.4% to 84.8 MSEK, with organic and currency-adjusted growth at -17.3%.

• Adjusted EBITDA for Q3 fell 94.7% to 0.6 MSEK, with a margin of 0.7%.

• Operating profit for Q3 was -6.6 MSEK, and net loss was -7.5 MSEK.

• Cash flow from operating activities improved to 6.4 MSEK in Q3 and 47.6 MSEK for the nine-month period.

• The company maintains market share despite weaker demand, especially in Europe, and continues to invest in product development and sales integration.

Financial highlights

• Net sales for Jan–Sept 2024 increased by 2.6% to 286.7 MSEK, but organic growth was -14.0%.

• Adjusted EBITDA for Jan–Sept 2024 decreased by 38.2% to 21.3 MSEK, margin at 7.4%.

• Operating profit/loss for Jan–Sept was -5.9 MSEK, down from 8.0 MSEK last year.

• Net loss for Jan–Sept was -9.4 MSEK, with EPS at -0.64 SEK.

• Gross margin for Q3 was 66.9% (down from 73.1%), and for Jan–Sept 67.5% (down from 71.6%).

Outlook and guidance

• Management expects the downturn in demand, especially in Europe, to be temporary and sees long-term growth potential driven by global infrastructure investments.

• The company is focused on long-term growth, cost management, and operational efficiency, with positive long-term prospects.