Greenmerc (GMERC) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased by 65% year-over-year to 79.65 MSEK, with continued strong growth and a focus on profitable expansion.

• EBITDA for Q3 was 0.72 MSEK, down from 1.00 MSEK last year, while net income after tax was 0.58 MSEK, compared to 0.82 MSEK.

• For the first nine months, net sales rose 159% year-over-year to 297.72 MSEK, with net income after tax at 4.62 MSEK, up from 0.16 MSEK.

• Positive operating cash flow maintained, supporting investments in new products and services.

• Strategic focus on compliance and readiness for new regulations, with plans for European expansion via MICA license.

Financial highlights

• Q3 gross profit was 3.46 MSEK, a slight decrease from 3.51 MSEK year-over-year.

• Operating income for Q3 was 0.50 MSEK, down from 0.82 MSEK last year.

• Cash flow from operations in Q3 was 0.61 MSEK, a significant improvement from -2.69 MSEK last year.

• Period-end cash for Q3 was 20.83 MSEK, up from 5.19 MSEK a year earlier.

• Goodwill increased to 4.04 MSEK, mainly from the 2022 acquisition of ljort Invest AB.

Outlook and guidance

• Management expresses confidence in continued growth and a strong market position, with ongoing product development and regulatory compliance as priorities.

• Expansion into Europe is planned, leveraging a forthcoming MICA license and acquisition strategy.