Latour (LATO) Q3 2024 earnings summary

Executive summary

• Net asset value per share increased by 11.3% to SEK 216 during the first nine months, with total return on the listed portfolio at 22.5%, outperforming the SIXRX index.

• Achieved organic growth in order intake and net sales despite a subdued business climate, especially in construction and real estate.

• Six acquisitions completed or agreed in 2024, adding SEK 2.4 billion in annual net sales.

• Wholly-owned operations and investment portfolio contributed significantly to value creation.

• Swegon and Bemsiq reported particularly strong order intake and profitability.

Financial highlights

• Net asset value totaled SEK 138.1 billion after deducting net debt.

• Order intake increased by 3% and net sales by 2% in Q3; organic growth was 2% and 1% respectively.

• Quarterly EBIT reached SEK 927 million, with an operating margin of 14.9%.

• Result after tax rose to SEK 4,736 million, or SEK 7.36 per share.

• Net debt at SEK 13.4 billion, representing 9% of market value of investments.

Outlook and guidance

• Management expects a prolonged but not deep economic downturn, with recovery likely in 2025.

• Financial targets reaffirmed: >10% annual growth, >15% operating margin, >15% return on operating capital.

• M&A pipeline remains healthy, with further acquisitions anticipated.

• Demand is relatively good despite the downturn, but market conditions vary by geography and sector.