Purmo Group (PURMO) investor relations material

Executive summary

• Net sales decreased by 2% to EUR 173.3 million in Q3 2024 and by 6% to EUR 532.7 million for January–September 2024 year-over-year.

• Adjusted EBITDA declined by 9% to EUR 21.3 million in Q3 and by 6% to EUR 66.6 million for the nine-month period.

• EBIT fell to EUR 5.3 million in Q3 (from EUR 11.2 million) and to EUR 29.1 million for the nine months (from EUR 35.2 million), impacted by comparability adjustments.

• Project Grand Bidco (UK) Limited completed a public tender offer, acquiring over 98% of shares by August 2024.

• Acquisition of Unitherm Heating Systems Ltd completed after the review period, supporting the solution selling strategy.

Financial highlights

• Q3 2024 net sales: EUR 173.3 million (-2% year-over-year); nine months: EUR 532.7 million (-6%).

• Adjusted EBITDA margin in Q3: 12.3% (down from 13.3%); nine months: 12.5% (unchanged year-over-year).

• Profit for Q3: EUR -5.2 million (down from EUR 4.5 million); nine months: EUR 3.5 million (down from EUR 14.1 million).

• Cash flow from operating activities: EUR -12.6 million in Q3 (EUR 1.1 million prior year); EUR -2.2 million for nine months (EUR 7.9 million prior year).

• Net debt at period end: EUR 262.4 million; net debt/adjusted EBITDA: 2.99.

Outlook and guidance

• Adjusted EBITDA for 2024 expected to be at or above 2023 level (EUR 92.3 million).

• Market activity expected to gradually improve as wholesaler stock levels stabilize and interest rates decline.

• Accelerate PG programme on track to deliver EUR 50 million cumulative adjusted EBITDA run-rate improvements by year-end.

• Geopolitical risks and high uncertainties may impact core markets.