Go North Group (GONORTH) Q3 2024 earnings summary

Executive summary

• Q3 2024 focused on business transition, including a new organizational structure by product category and commercial focus, with improved margins and fixed cost control driving profit growth compared to Q3 2023.

• No acquisitions were made; the company owns 33 brands, one less than last year.

• Entered a formal reconstruction process to address high debt and negative equity, aiming to stabilize and build for growth.

Financial highlights

• Net sales for Q3 2024 were KSEK 131,320, down from KSEK 167,697 in Q3 2023.

• Adjusted EBITDA improved to KSEK 3,858 from KSEK -3,106 year-over-year.

• EBITA reached KSEK 2,331, up from KSEK -4,732 in Q3 2023.

• Cash flow from operating activities was KSEK -31,426, a significant improvement from KSEK -164,920 in Q3 2023.

• Earnings per share for Q3 2024 was 4.76, compared to -68.4 in Q3 2023.

Outlook and guidance

• Preparing a reconstruction plan to renegotiate outstanding debt and secure a viable future as a going concern.

• November and December revenue expected to be significantly impacted by Amazon's removal of a top product due to patent claims.