Pamica Group (PAMICA) Q3 2024 earnings summary

Executive summary

• Net sales rose 36% to SEK 1,200.9m in Q3 2024, with 8% organic growth; YTD sales up 33% to SEK 3,352.2m.

• Adjusted EBITA surged 111% to SEK 133.8m in Q3, margin improved to 11% (7%); YTD adjusted EBITA up 26% to SEK 281.1m.

• Period result fell to SEK 38.2m in Q3 (SEK 74.2m) and SEK -48.1m YTD (SEK 84.9m), mainly due to goodwill write-downs.

• Strong operating cash flow: SEK 134.9m in Q3 (SEK -4.6m), SEK 289.7m YTD (SEK 100.7m).

• Major acquisition: 90.1% of SKAB Group, a profitable truck body manufacturer, consolidated from September.

Financial highlights

• Q3 organic sales growth 8%; YTD organic growth 6%.

• Adjusted EBITA margin Q3: 11% (7%); YTD: 8% (9%).

• EBIT margin Q3: 9% (6%); YTD: 3% (6%).

• EPS after dilution Q3: SEK 0.41 (0.89); YTD: SEK -0.51 (1.08).

• Return on capital employed: 33% YTD.

• Net debt/adjusted EBITDA: 3.1x at Q3 end, down from 3.4x in Q2.

• Equity ratio: 40% at Q3 end.

Outlook and guidance

• Focus on profitability improvements and cash flow strengthening in 2025 budgeting.

• SKAB expected to continue strong performance in Q4.

• Some subsidiaries face weak demand in moving, construction, and marketing; efficiency measures ongoing.