ABAS Protect (ABAS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 reached 27,828 TSEK, up from 25,677 TSEK in Q3 2023, with a bruttomarginal of 42.8% compared to 49.3% last year.

• Operating income (EBIT) for Q3 was 2,473 TSEK, down from 3,360 TSEK in Q3 2023; net income after tax was 1,575 TSEK versus 2,365 TSEK last year.

• For January–September 2024, net sales were 73,667 TSEK, a decrease from 76,885 TSEK year-over-year; bruttomarginal was 47.4% (47.9%).

• The company is experiencing price pressure and fewer projects due to a challenging market, but sees positive signals in the construction segment and continued strength in critical infrastructure.

• Efficiency program implemented, expected to yield annual savings of 1.5–2 MSEK, with effects visible from Q1 2025.

Financial highlights

• Q3 2024 net sales: 27,828 TSEK (+8.4% year-over-year); EBIT: 2,473 TSEK (down from 3,360 TSEK); net margin: 5.66%.

• January–September 2024 net sales: 73,667 TSEK (down from 76,885 TSEK); EBIT: 4,518 TSEK (down from 6,549 TSEK); net margin: 3.40%.

• Earnings per share (undiluted) for Q3: 0.35 SEK (0.37 SEK last year); for nine months: 0.64 SEK (0.68 SEK last year).

• Cash and cash equivalents at period end: 425 TSEK (395 TSEK last year); unused credit facility: 1,523 TSEK.

• Group equity at period end: 43,185 TSEK (35,333 TSEK last year); equity ratio: 48% (42%).

Outlook and guidance

• Market remains challenging with price pressure and fewer tenders, but construction segment shows signs of recovery.

• Critical infrastructure segment expected to remain strong and grow in importance.

• Efficiency program to deliver cost savings from Q1 2025.