Nordrest (NREST) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 413 million, down 3.0% year-over-year, mainly due to lower MRE (Meals Ready to Eat) sales in the Defense segment; excluding Defense, Q3 sales grew 15%.

• Year-to-date net sales increased 7.4% to SEK 1,373 million, with strong growth in most customer groups except Defense.

• EBITA for Q3 was SEK 37 million (margin 9.0%), down from SEK 52 million (12.1%) in Q3 2023; year-to-date EBITA was SEK 117 million (margin 8.6%).

• Strong growth in Travel (+34%), Hospitals & Elderly Care (+17%), Higher Education (+9.5%), and Schools (+4.7%) in Q3 year-over-year.

• Strategic relocation of MRE operations completed, supporting future growth.

Financial highlights

• Q3 net sales: SEK 413 million (-3.0% year-over-year); year-to-date: SEK 1,373 million (+7.4%).

• Q3 EBITA: SEK 37 million (margin 9.0%); year-to-date EBITA: SEK 117 million (margin 8.6%).

• Q3 EBITDA: SEK 42 million (10.1% margin); year-to-date EBITDA: SEK 131 million (9.5% margin).

• Net debt at -64 MSEK; leverage ratio (Net debt/EBITDA) at -0.4x.

• Cash flow from operations Jan–Sep: 106 MSEK before working capital changes; cash position at period end: 137 MSEK.

Outlook and guidance

• Medium-term targets: organic growth >10%, EBITA margin 8–10%, dividend payout >50%, net debt/EBITDA <2.0x.

• MRE segment expected to remain volatile; infrastructure changes in MRE support future growth.

• Continued strong outlook for the military market and increased demand from municipalities and regions for food stockpiling.

• MRE order of 150 MSEK via NATO Support and Procurement Agency to be delivered over two years from 2025.