Lammhults Design Group (LAMM) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 10% year-over-year to SEK 188.7m, with a weak start but strong finish to the quarter.

• Operating profit for Q3 was SEK 4.4m (2.3% margin), down from SEK 12.2m (5.8%) last year, mainly due to lower sales and underutilized capacity.

• Order intake rose 14% year-over-year in Q3, with positive trends in both Office and Library Interiors.

• A cost-reduction and restructuring program was initiated post-quarter to improve profitability, targeting SEK 30–40m EBIT improvement annually.

• The program is expected to impact 20–25 positions, mainly white-collar roles, and includes asset write-downs of SEK 30m and restructuring reserves of SEK 20m in Q4.

Financial highlights

• Q3 2024 net sales: SEK 188.7m (down 10% year-over-year); 9M 2024 net sales: SEK 609.8m (down 12.9%).

• Q3 operating profit: SEK 4.4m (2.3% margin); 9M operating loss: SEK -18.8m (-3.1% margin).

• Q3 net income: SEK 0.1m (EPS SEK 0.01); 9M net loss: SEK -22.1m (EPS SEK -2.61).

• Q3 order intake: SEK 195.7m (+14% year-over-year); order backlog up 17.6% to SEK 195.7m.

• Investments in tangible assets for 9M: SEK 12.5m; cash flow from operations for 9M: SEK -3.2m.

Outlook and guidance

• The restructuring program aims for a sustainable business and annual EBIT improvement of SEK 30–40m from 2025.

• Asset write-downs of SEK 30m and SEK 20m in restructuring costs will impact Q4 EBIT.

• The company targets an 8–10% EBIT margin by 2026, focusing on cost optimization and organizational efficiency.