Navigo Invest (NAVIGO) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 7.8% to 116.5 Mkr compared to Q3 2023; EBITDA was -0.7 Mkr, down from 6.9 Mkr last year.

• The group posted a Q3 operating loss of 5.8 Mkr, mainly due to weak results in Vinga and Calormet, while Chemgroup and Geogruppen showed strong growth.

• Substansvärde per stamaktie fell to 9.24 SEK, a 5% decrease from Q2 and 20% since year-end, mainly due to Nordisk Bergteknik's share price decline.

• Cash flow from operations was negative at -16.4 Mkr for Q3 and -48.5 Mkr for the nine months, reflecting weaker results and increased personnel costs.

• Management expects improved margins and profitability in coming quarters, supported by cost reductions and positive signals from key holdings.

Financial highlights

• Q3 net sales: 116.5 Mkr (126.4 Mkr Q3 2023); nine months: 427.0 Mkr (276.6 Mkr 2023), up 35% year-over-year.

• Q3 EBITDA: -0.7 Mkr (6.9 Mkr Q3 2023); nine months: 37.1 Mkr (53.3 Mkr 2023).

• Q3 net income: -10.7 Mkr (-0.1 Mkr Q3 2023); nine months: 5.9 Mkr (69.9 Mkr 2023).

• Q3 EPS: -0.11 SEK (-0.02 SEK Q3 2023); nine months: 0.06 SEK (0.81 SEK 2023).

• Substansvärde per stamaktie: 9.24 SEK (11.55 SEK at year-end 2023).

Outlook and guidance

• Management anticipates improved margins and profitability in Q4, citing cost reductions and positive developments in several subsidiaries.

• The most challenging phase of the economic cycle appears to be over for key holdings, with expectations of continued recovery.