LifeClean International (LCLEAN) Q3 2024 earnings summary

Executive summary

• Net sales increased to 13,930 TSEK in Q3 2024 from 10,136 TSEK year-over-year, driven by subsidiary Kempartner Ocean's positive EBITDA contribution.

• A cost-saving program was initiated, expected to impact results from Q4 2024 and fully by Q1 2025.

• Signed a five-year partnership with Presto Group for PFAS decontamination, with an initial order of 2 MSEK and projected annual growth to 10 MSEK.

• Received a significant order from SAAB Bofors for PFAS decontamination.

• Interim CEO appointed after previous CEO's departure; recruitment for a permanent CEO is underway.

Financial highlights

• Q3 2024 net sales: 13,930 TSEK (up from 10,136 TSEK in Q3 2023); nine-month net sales: 50,718 TSEK (up from 38,096 TSEK year-over-year).

• Adjusted EBITDA Q3: -5,831 TSEK (vs. -4,601 TSEK); EBITDA Q3: -10,242 TSEK (vs. -8,985 TSEK); EBIT Q3: -12,531 TSEK (vs. -11,240 TSEK).

• Cash flow from operations Q3: -9,856 TSEK (vs. -7,134 TSEK); cash at period end: 13,855 TSEK.

• Three directed share issues raised 47,924 TSEK in the first nine months.

• Investments in product development and patents totaled 1,041 TSEK for the nine-month period.

Outlook and guidance

• Cost-saving and productivity measures are expected to improve profitability from Q4 2024, with full effect in Q1 2025.

• Regulatory pressure and increased media attention on PFAS are driving customer interest in decontamination products.

• Ongoing expansion in the Middle East and continued focus on manufacturing and maritime sectors in the Nordics.