Knaus Tabbert (KTA) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 declined 16.4% year-over-year to €897.2 million, with Q3 revenue down 38.0% compared to Q3 2023.

• Adjusted EBITDA for the nine-month period was €42.9 million, down 51.5% year-over-year, with a Q3 adjusted EBITDA loss of €24.5 million.

• Free cash flow for the nine months was negative €27.9 million, but improved to €45.9 million in some reports, reflecting ongoing inventory and working capital management.

• CEO Wolfgang Speck departed as of October 31, 2024, with Werner Vaterl assuming the CEO role.

• Management focused on dealer support, production cutbacks, and digital brand expansion to address market challenges.

Financial highlights

• Premium segment revenue dropped 17.1% to €785.2 million; luxury segment revenue fell 11.2% to €111.9 million for the nine months.

• Adjusted EBIT for the nine months was €17.0 million, down 75.5% year-over-year; Q3 adjusted EBIT was a loss of €33.3 million.

• Net financial debt increased to €321.0 million as of September 30, 2024.

• Equity ratio declined to 24.3% from 28.2% at year-end 2023.

• Inventories of raw materials and supplies were reduced by over €80 million.

Outlook and guidance

• Full-year 2024 revenue is forecast at €1.3 billion, with adjusted EBITDA margin expected significantly below the original 7%-8% target.

• No specific earnings figure or margin range provided due to ongoing uncertainties, especially regarding short-term cost developments.

• Dealer inventory reduction initiatives and promotional campaigns are expected to support sales and inventory turnover.

• Production volumes and cost structure will be adjusted in the coming months, with further details expected by Q1 2025.