Ortelius International (ORTIN) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 increased to 73.0 MSEK from 69.9 MSEK year-over-year, with continued strong demand for recreational vehicles, especially in Uppland, Sweden.

• EBITDA for Q3 was 1.6 MSEK, slightly below last year, while operating income was -1.0 MSEK, down from -0.4 MSEK.

• Result per share improved to -1.91 SEK from -3.04 SEK in Q3 2023.

• The company is focusing on organic growth, acquisitions, and attracting expansion capital.

Financial highlights

• Q3 gross margin declined to 9.8% from 11.1% year-over-year due to a higher share of lower-margin brokerage sales.

• Net sales for Jan–Sep 2024 reached 198.2 MSEK, up from 193.2 MSEK; EBITDA for the period was 1.3 MSEK, down from 2.8 MSEK.

• Operating income for Jan–Sep was 14.6 MSEK, a significant improvement from -3.4 MSEK, mainly due to a 20 MSEK reversal of inventory write-downs.

• Cash flow from operations in Q3 was 0.6 MSEK; cash and cash equivalents at period end were 2.1 MSEK, down from 10.4 MSEK last year.

Outlook and guidance

• Q4 is expected to see a seasonal decline in sales, but the start of the quarter has been stronger than last year.

• Market conditions for spring 2025 are seen as favorable, with lower interest rates and reduced motorhome taxes expected to support demand.

• The company will focus on securing financing for the parent company and its strategy in coming quarters.