Harm Reduction Group (NOHARM) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were 30,491 KSEK, down from 45,641 KSEK year-over-year; EBITDA was -7,395 KSEK compared to 251 KSEK last year.

• The company restructured into three divisions: Trade (B2B), Retail (B2C), and Venture Growth, aiming for clearer focus and improved performance.

• B2B (Trade) segment showed positive development, while Retail faced challenges from increased competition and regulatory changes.

• New CEO Petter Strömberg appointed in August; Aroma King Global became a major shareholder after a directed share issue.

• Eurobrands Industries AB was divested during the quarter.

Financial highlights

• Q3 2024 net sales: 30,491 KSEK (down from 45,641 KSEK year-over-year).

• EBITDA: -7,395 KSEK (251 KSEK last year); EBIT: -12,416 KSEK (-4,114 KSEK last year).

• Net result: -9,539 KSEK (-4,139 KSEK last year); EPS: -0.08 SEK (0.05 SEK last year).

• Cash and cash equivalents at period end: 2,022 KSEK (2,760 KSEK last year).

• Group nine-month net sales: 105,507 KSEK (127,063 KSEK last year); EBITDA: -18,791 KSEK (453 KSEK last year).

Outlook and guidance

• Focus remains on optimizing operations, improving profitability, and building a stable foundation for future growth.

• The company aims to strengthen its market position through division restructuring and cost control.

• Continued efforts to grow both organically and via acquisitions.