Elmera Group (ELMRA) Q3 2024 earnings summary

Executive summary

• Net revenue and adjusted EBIT showed strong year-on-year growth, driven by improved core margins and cost reductions across all segments.

• Operating expenses declined due to ongoing cost-saving programs, supporting improved profitability.

• Customer base grew in the Nordic B2C segment, especially through organic sales activity, with stable deliveries in Norway.

• Refinancing completed, securing new credit facilities to support an updated sourcing model effective May 2025.

• Gross revenue declined 37% YoY to NOK 1,397m due to lower electricity prices, but profitability improved.

Financial highlights

• Adjusted net revenue reached NOK 368 million (NOK 350 million in Q3 2023); LTM NOK 1,780 million (NOK 1,631 million).

• Adjusted EBIT was NOK 79 million (NOK 50–53 million in Q3 2023); LTM NOK 572 million (NOK 384 million).

• Group operating expenses were NOK 289 million, down from NOK 297 million year-on-year.

• Net working capital reduced by NOK 99 million year-on-year, and free cash flow was strong.

• Net cash from operating activities was NOK 244 million in Q3 2024.

Outlook and guidance

• Financial targets for 2024 and 2025 are upheld: net revenue growth in all segments, stable OPEX, and adjusted EBIT target of NOK 550–600 million.

• Dividend policy targets a minimum 80% payout ratio of net income, adjusted for certain items.

• Positive outlook for business segment margins and continued moderate sales and marketing spend.

• Payments to obtain new contracts expected to remain at an annualized level of NOK 140 million.

• Main uncertainties remain electricity demand, prices, customer churn, and competition.