HAKI Safety (HAKI) Q3 2024 earnings summary

Executive summary

• Organic net sales grew 13% in Q3 2024, with total net sales up 1% to SEK 253 M compared to Q3 2023; divestments and FX had negative impacts.

• Adjusted EBITA doubled to SEK 18 M (7.1% margin), and operating profit rose to SEK 25 M, aided by a SEK 9 M positive earnout revaluation.

• Net result after tax increased to SEK 16 M (Q3 2023: SEK 10 M); EPS before dilution was SEK 0.59 (0.37).

• Cash flow from operating activities was negative at SEK -15 M, mainly due to investments in strategic rental materials.

• The group remains focused on supply chain efficiency, strategic rental, and growth in work zone safety, especially in France and the UK.

Financial highlights

• Q3 2024 net sales: SEK 253 M (Q3 2023: SEK 251 M); organic growth 13%, divestments -9%, FX -3%.

• Adjusted EBITA: SEK 18 M (Q3 2023: SEK 9 M); operating profit: SEK 25 M (18 M).

• Gross margin improved to 34.4% (33.5%); operating margin 9.9% (7.2%).

• Net result after tax: SEK 16 M (10 M); EPS before dilution: SEK 0.59 (0.37).

• Cash flow from operating activities: SEK -15 M (4 M).

Outlook and guidance

• Market activity increased in Q3, but short-term outlook remains uncertain due to geopolitical and macroeconomic risks.

• Long-term positioning is strong, with ambitions to grow in work zone safety and digital solutions.

• Financial targets: net sales of SEK 2,000 M by 2027, adjusted EBITA margin >10%, net debt/EBITDA <2.5, and dividend payout of 25-50% of net profit.