Absolent Air Care Group (ABSO) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw net sales decline by 6.7% year-over-year to SEK 331.0m, with EBITDA margin dropping to 16.8% from 20.8% and EBIT margin to 12.8% from 17.4%.

• Lower demand from the automotive sector and weak Nordic markets for Commercial Kitchen drove negative growth and profitability.

• Americas region delivered strong growth, especially in Canada, while EMEA and APAC saw sales declines.

• CEO Axel Berntsson announced his departure after eight years with the group.

Financial highlights

• Q3 net sales: SEK 331.0m (354.7m), EBITDA: SEK 55.6m (73.7m), EBIT: SEK 42.2m (61.6m), EPS: SEK 1.74 (3.48).

• 9M 2024 net sales: SEK 1,056.1m (1,066.5m), EBITDA: SEK 205.8m (213.3m), EBIT: SEK 165.7m (180.1m), EPS: SEK 9.70 (10.94).

• Operating cash flow Q3: SEK 28.0m (62.1m); 9M: SEK 91.9m (130.1m).

• Net debt reduced to SEK 259.3m (362.4m); equity ratio improved to 55.2% (46.7%).

Outlook and guidance

• Short-term challenges expected to persist in automotive and Nordic Commercial Kitchen markets.

• APAC, especially China, shows early signs of improvement due to government stimulus.

• Several new product launches planned for 2025 to strengthen competitiveness.