Nolato (NOLA) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached SEK 2,401 million, up 5% currency-adjusted year-over-year, with growth in both business areas and marking the first growth since Q2 2022.

• EBITA rose 22% to SEK 235 million, with a margin of 9.8%, driven by strategic price revisions, cost savings, and favorable product mix.

• Strong cash flow from operating activities at SEK 327 million, reflecting improved profit and reduced working capital.

• Net debt to EBITDA at 0.6x, indicating a strong financial position supporting global expansion.

• Profit after tax increased to SEK 164 million, and EPS rose to SEK 0.61 (0.48 adjusted).

Financial highlights

• Net sales for Q3 were SEK 2,401 million, up from SEK 2,340 million year-over-year.

• EBITA (excluding non-recurring items) was SEK 235 million, up from SEK 193 million, with a margin of 9.8% (8.2%).

• Adjusted EPS increased to SEK 0.61 from SEK 0.48.

• Cash flow from operations was SEK 327 million, up from SEK 280 million.

• Net investments rose to SEK 136 million, mainly due to medical expansion in Hungary.

Outlook and guidance

• CapEx for 2024 is expected to be around SEK 700 million, with significant investments tied to a major customer project extending into 2025 and 2026.

• Engineered Solutions expects lower end-customer demand in automotive to negatively impact Q4, with longer customer shutdowns.

• Medical Solutions faces continued negative impact from a customer product recall, expected to persist into Q4.

• Some medical supply chain adjustments may continue, especially in endoscopy and cardiology.

• Materials/EMC segment shows signs of recovery, with potential for further improvement in 2025.