Bong (BONG) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 declined to SEK 456 million from SEK 477 million year-over-year; nine-month sales fell to SEK 1,420 million from SEK 1,549 million.

• Operating profit for Q3 dropped to SEK 1 million (8), and for the nine months to SEK 30 million (40); gross margin improved year-over-year.

• Earnings after tax were SEK -13 million for Q3 (Q3 2023: -2) and SEK -15 million for the nine months (2023: 1); EPS at SEK -0.06 for Q3 and SEK -0.07 for the period.

• Cash flow from operating activities was SEK 1 million in Q3 (28) and SEK 40 million for the nine months (47).

• Refinancing of senior secured bonds completed, extending maturity to December 2028 and reducing bond amount to SEK 52 million.

Financial highlights

• Currency-adjusted sales decreased by 9% year-over-year for the nine months, mainly due to lower prices and market decline in envelopes.

• Gross margin increased compared to the same period last year.

• Net financial items for the nine months were SEK -31 million (-30); earnings before tax SEK -1 million (10).

• Cash and cash equivalents at September 30, 2024, were SEK 141 million (SEK 129 million at Dec 31, 2023); total available liquidity SEK 149 million.

Outlook and guidance

• Light Packaging sales expected to remain strong in Q4 2024 and Q1 2025, supported by new product lines and contracts.

• Ongoing cost reduction and productivity improvements to counteract market and price pressures.

• Long-term trend for sustainable packaging anticipated to drive growth.