Momentum Group (MMGR) Q3 2024 (Q&A) earnings summary

Executive summary

• Achieved 20% revenue growth in Q3 2024, with 3% organic growth and strong acquisition contributions.

• EBITA margin improved to 12.8% from 12.1% year-over-year, reflecting higher profitability.

• Net profit rose 25% to SEK 55m, and earnings per share increased to SEK 1.05 from SEK 0.85.

• Stable demand in most Nordic markets, with robust aftermarket performance in Sweden and healthy demand in Denmark.

• Seven companies acquired year-to-date, adding SEK 250 million in annual revenue.

Financial highlights

• Q3 revenue reached SEK 694m, up from SEK 580m in Q3 2023; EBITA increased by 27% to SEK 89m.

• Q3 net profit: SEK 55 million (up 25%); EPS: SEK 1.05 (up 24%).

• Jan–Sep 2024 revenue grew 30% to SEK 2,128m, EBITA up 29% to SEK 252m, and net profit up 18% to SEK 152m.

• EBITA margin for Jan–Sep was 11.8% (12.0% last year).

• Return on working capital (EBITA/WC) at 60%; equity/assets ratio at 33%.

Outlook and guidance

• Economic improvement expected later than previously anticipated, likely shifting to next year due to ongoing market challenges, particularly in Germany.

• Focus remains on long-term profitable growth, targeting earnings growth above 15% and EBITA/WC above 45%.

• Optimism maintained for continued growth and profitability, with a focus on active ownership, employee development, and acquisitions.

• Demand expected to remain muted due to global uncertainty and high interest rates.