eCom Teams Sweden (ECTM) Q3 2024 earnings summary

Executive summary

• Completed strategic sale of Footway OaaS platform, focusing solely on e-commerce and product teams, and rebranded as eCom Teams.

• Sale generated liquidity of approximately 45 MSEK, used to reduce bank loans and strengthen financial stability.

• Extraordinary inventory write-down of 90 MSEK due to delayed refinancing and limited supplier credits, impacting assortment and sales.

• CEO transition announced, with Daniel Mühlbach stepping down and recruitment of a new CEO underway.

Financial highlights

• Q3 net revenue was 104.4 MSEK, down from 136.2 MSEK year-over-year; Q1–Q3 net revenue was 312.7 MSEK, a 47% decrease.

• Adjusted Q3 EBITA was 20.4 MSEK (excluding inventory write-down), compared to -30.9 MSEK last year.

• Q3 reported EBITA was -69.6 MSEK, heavily impacted by the extraordinary inventory write-down.

• Q3 net result was -95.7 MSEK, including 89.9 MSEK inventory and 10.9 MSEK intangible asset write-downs.

• Q3 operating cash flow was 10.7 MSEK; total cash flow for Q3 was 35.9 MSEK, supported by the platform sale.

Outlook and guidance

• Focus on restoring normal supplier credit terms to improve inventory coverage and meet demand.

• Cost base expected to decrease by 30–40 MSEK annually due to restructuring and platform divestment.

• Anticipates improved cash flow and profitability as a result of operational focus and cost reductions.