B&C Speakers (BEC) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached €76.63 million, up 7.6% year-over-year, driven by new subsidiaries and strong performance in Europe and North America.

• Net profit rose 35.3% to €15.8 million, mainly due to the Patent Box subsidy, which contributed €3.99 million.

• EBITDA increased by 1.2% to €17.71 million, with an EBITDA margin of 23.1% (down from 24.6% in 2023 due to lower margins at new subsidiaries).

• New orders in the first nine months totaled €69 million, up 33% year-over-year, though a slowdown was noted after the quarter's end.

• Integration of Eminence Speakers LLC and B & C Speakers (Dongguan) Electronic Co. Ltd. began, aiming to harmonize operations and strategy across the group.

Financial highlights

• EBIT was €15.7 million, down 1.2% year-over-year, with an EBIT margin of 20.5%.

• Net financial position was negative €1.1 million, worsening from negative €0.6 million at year-end 2023, mainly due to €7.7 million in dividend payments.

• Cash and cash equivalents decreased to €9.4 million from €14.6 million at year-end 2023.

• Basic and diluted EPS for the period were €1.44, up from €1.07 in the prior year.

• Revenue growth was supported by €10 million from new subsidiaries: €5.8 million from North America and €4.2 million from Asia.

Outlook and guidance

• Management expects 2024 to close with improved production and sales levels versus 2023, supported by contributions from the new subsidiaries.

• Initial impacts of integration projects for the new subsidiaries are anticipated in the next financial year.

• Recent order intake has slowed compared to earlier in the year.

• Ongoing geopolitical risks, particularly the Russia-Ukraine conflict, could indirectly affect demand and results.