Green Cargo (GC) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased 4% to SEK 1,012 million compared to Q3 2023, with operating income at SEK 18 million versus a loss of SEK -42 million last year.

• Net income for Q3 was SEK 8 million, a turnaround from SEK -44 million in Q3 2023.

• For the nine months, net sales rose to SEK 3,217 million (up 3%), but operating income was SEK -87 million, down from SEK 27 million last year.

• New transport contracts signed in Q3 totaled SEK 202 million, up from SEK 150 million in Q3 2023.

• Cost reductions and improved efficiency contributed to the positive Q3 result, despite lower freight volumes.

Financial highlights

• Q3 operating margin improved to 1.6% from -3.9% in Q3 2023.

• Organic operating income (excluding environmental compensation) for Q3 was SEK -34 million, an improvement from SEK -98 million last year.

• Environmental compensation contributed SEK 52 million to Q3 results.

• Cash flow from operations in Q3 was SEK 5 million, up from SEK -41 million in Q3 2023.

• Net debt/equity ratio increased to 3.2x from 1.6x a year ago.

Outlook and guidance

• Ongoing transformation and network efficiency measures are expected to further improve competitiveness and cost structure.

• Anticipated higher rail infrastructure fees in December will impact costs, but network changes aim to mitigate this.