Reka Industrial (REKA) Q3 2024 earnings summary

Executive summary

• Strategy work ongoing to grow into a medium-sized listed company over five years; focus on Reka Rubber after sale of Reka Cables in April 2023.

• Group turnover for Jan–Sep 2024 was EUR 20.7 million, EBITDA EUR 0.1 million; comparison period included Reka Cables.

• Cash and cash equivalents at EUR 26.0 million, mainly invested in low-risk instruments.

• Market uncertainty and economic conditions impacted order volumes and profitability.

Financial highlights

• Jan–Sep 2024 Group turnover EUR 20.7 million (EUR 84.6 million in 2023, which included Reka Cables).

• Group EBITDA EUR 0.1 million (EUR 38.0 million in 2023, including EUR 31.0 million gain from Reka Cables sale).

• Result for the period EUR 0.0 million (EUR 34.4 million in 2023).

• Earnings per share EUR 0.01 (EUR 5.75 in 2023).

• Cash and cash equivalents at period end EUR 26.0 million; EUR 12.0 million dividend paid in May 2024.

Outlook and guidance

• Strategy process continues with focus on productivity and profitability in the Rubber segment.

• Challenging market conditions expected to persist in coming months; investments in long-term growth ongoing.

• Funds mainly invested in low-risk instruments during strategy process.