Fenix Outdoor (FOI-B) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales declined 11.4% year-over-year to €197.5m, with continued retail market weakness and supply chain delays impacting results.

• EBITDA for Q3 was €43.6m, down from €51.4m, and operating profit fell to €28.6m from €37.4m year-over-year.

• Profit after tax for Q3 was €18.5m, compared to €27.8m last year; EPS was €1.38 versus €2.08.

• Inventory levels were reduced, gross margin improved to 57.7% from 56.0%, and net liquidity increased to €29.3m from -€10.6m.

• No significant events occurred after the period close.

Financial highlights

• Nine-month net sales decreased 7.9% year-over-year to €521.0m; EBITDA was €78.1m (down from €96.1m), and operating profit was €34.8m (down from €54.6m).

• Profit before tax for the nine months was €27.7m, down from €54.7m; profit after tax was €17.9m, down from €38.8m.

• Cash and cash equivalents at period-end were €67.6m, up from €41.9m; interest-bearing liabilities decreased to €38.6m from €55.3m.

• Solvency rate improved to 61.5% from 58.8% year-over-year.

• Group equity stood at €417.5m at period-end.

Outlook and guidance

• Q4 sales outlook is cautiously positive, with early weeks showing improvement and a stronger preorder book for spring.

• Management expects continued supply chain and transport challenges, with potential for higher transport and compliance costs.

• Customer sentiment for next year's fall and winter orders is more optimistic.