Anora Group (ANORA) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 6% year-over-year to EUR 162.7 million, with comparable EBITDA down 21.4% to EUR 15.9 million, mainly due to lower beverage volumes in key Nordic markets and operational disruptions in Denmark.

• All segments improved gross margins, but overall gross profit fell 17.6% to EUR 68.4 million, impacted by the absence of a one-off capital gain from the Larsen divestment in the prior year.

• CEO Jacek Pastuszka announced his intention to retire once a successor is appointed; a recruitment process is underway.

• Net debt reduced to EUR 200.7 million, with leverage at 2.8x, reflecting progress in deleveraging.

• Dividend of EUR 0.22 per share for FY 2023 paid in April 2024.

Financial highlights

• Q3 2024 net sales: EUR 162.7 million (down 6% year-over-year); comparable EBITDA: EUR 15.9 million (down 21.4%); EBITDA margin: 9.8%.

• January–September 2024 net sales: EUR 486.7 million (down 5.5% year-over-year); comparable EBITDA: EUR 40.0 million (down 2.8%).

• Q2 2024 net sales: EUR 177.1 million (down 3.1% year-over-year); comparable EBITDA: EUR 15.2 million (up 16.9%).

• Net cash flow from operations in H1 2024: EUR -49.0 million, impacted by seasonal working capital increase.

• Net debt/comparable EBITDA (LTM): 3.3 at Q3 2024; equity ratio: 39.5%.

Outlook and guidance

• 2024 comparable EBITDA expected at EUR 65–70 million, revised down from EUR 75–85 million due to weaker beverage sales volumes in September.

• Key markets' volumes anticipated to be slightly lower in 2024 amid challenging economic conditions and regulatory changes in Finland.

• Management will review cost base for next year in light of higher-than-expected volume declines.