Agtira (AGTIRA) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 15% to 6.3 MSEK compared to Q3 2023, mainly due to lingering effects from an earlier incident at the Härnösand facility, but production is stabilizing and expected to return to near full capacity in Q4.

• The new Haninge facility is fully operational, increasing total production capacity by 25% and expected to contribute sales before year-end.

• A 10-year distribution agreement with Lidl was signed for cucumber production in Kramfors, with phased expansion starting in Q1 2025.

• Strategic focus has shifted to profitability, with cost-saving measures, organizational restructuring, and divestment of fish production to concentrate on core vegetable operations.

Financial highlights

• Q3 2024 net sales: 6.3 MSEK (7.3 MSEK in Q3 2023), a 15% decrease year-over-year.

• EBIT for Q3 2024: -9.6 MSEK (-7.2 MSEK in Q3 2023); EBITDA: -7.6 MSEK (-5.8 MSEK in Q3 2023).

• Earnings per share for Q3 2024: -0.37 SEK (-0.49 SEK in Q3 2023).

• Cash flow from operations: -619 TSEK (787 TSEK in Q3 2023); liquidity at period end: 298 TSEK (3,207 TSEK in Q3 2023).

• Investments in new facilities and equipment totaled 23.8 MSEK in Q3 2024.

Outlook and guidance

• Production is expected to return to near full capacity in Q4 2024 following remediation at Härnösand.

• The Haninge and Kramfors expansions are projected to bring total production area to 19,000–20,000 sqm in H1 2025, progressing toward the 23,000–25,000 sqm target.

• Cost-saving measures are expected to yield annual savings of approximately 8 MSEK, with restructuring costs of 1.3 MSEK impacting Q4 2024.