New Nordic Healthbrands (NNH) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 4.1% to SEK 129.6 million, with a local currency decline of 0.8%.

• Gross margin for Q3 was 66.4%, slightly down from 66.8% last year.

• Operating profit for Q3 dropped to SEK 0.3 million from SEK 3.1 million; profit after tax was SEK -1.8 million.

• For the first nine months, net sales rose 2.4% to SEK 400.7 million, but operating result fell to SEK -5.4 million.

• Cash flow from current operations for the nine months was SEK -16.6 million, compared to SEK 18.2 million last year.

Financial highlights

• Q3 net sales: SEK 129.6 million (down 4.1% year-over-year); nine months: SEK 400.7 million (up 2.4%).

• Q3 gross profit: SEK 86.1 million; gross margin: 66.4%.

• Q3 EBITDA: SEK 0.8 million (down from SEK 3.5 million); nine months EBITDA: SEK -3.8 million.

• Q3 profit after tax: SEK -1.8 million; nine months: SEK -9.6 million.

• Cash and cash equivalents at period end: SEK 10.1 million; net debt increased to SEK 35.3 million.

Outlook and guidance

• Management expects gross margin to improve in Q4 due to price negotiations and implemented price increases.

• Anticipates improved sales and profitability in Denmark and Sweden as retailer inventory levels normalize.

• Confident in returning to profitability and self-financing future growth.