Norditek Group (NOTEK) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2023/24 was SEK 21.3m, down 0.5% year-over-year, with EBITA margin rising to 25.6% from 7.5% due to strong project deliveries and reduced currency losses.

• Nine-month revenue fell 36.6% year-over-year to SEK 51.1m, reflecting prior year sales shifts and supply chain issues.

• Order intake remained strong, with a growing pipeline indicating a return to profitable growth.

• No significant events occurred during or after the quarter.

Financial highlights

• Q3 EBITA was SEK 5.5m (SEK 1.6m last year), EBIT SEK 4.4m (SEK 0.6m), and EPS SEK 0.18 (-0.03).

• Nine-month EBITA was SEK 7.2m (SEK 15.8m), EBIT SEK 4.1m (SEK 12.7m), and EPS SEK 0.00 (0.64).

• EBITDA margin for Q3 was 26.0% (8.2%), and for nine months 14.6% (20.1%).

• Cash flow from operations for nine months was SEK 2.2m (-12.2m), with total cash flow at SEK -0.3m (-15.1m).

• Net debt/EBITDA increased to 8.0x (1.8x), mainly due to higher leasing liabilities and lower earnings.

Outlook and guidance

• Order intake and quotation pipeline remain strong, supporting expectations of a return to profitable growth in the current fiscal year.

• Inventory levels are expected to normalize by year-end, improving leverage.

• The efficiency program is on track for full implementation by fiscal year-end, aiming for scalable growth with lower investment needs.