Relais Group (RELAIS) Q3 2024 earnings summary

Executive summary

• Achieved seventh consecutive quarter of EBITA/EBITDA growth, with Q3 2024 net sales up 7% to €74.9M and EBITA up 9% to €9.1M; organic growth was 4%.

• Gross margin improved to 48.1% from 45.9%, driven by business mix and gains in commercial vehicle repair and maintenance.

• Finland led growth with 10% increase in Q3 (organic +3%), while Scandinavia grew 4% organically.

• Two acquisitions in heavy commercial vehicle repair and maintenance completed in 2024, including Team Verkstad Sverige AB.

• Earnings per share improved to €0.26 in Q3 and €0.65 for the nine months.

Financial highlights

• Q3 2024 net sales: €74.9M (+7%); comparable EBITA: €9.2M (+6%); EPS: €0.26 (€0.24 in Q3 2023).

• Gross margin in Q3: 48.1% (45.9% Q3 2023); 1-9/2024: 47.3% (45.0% 1-9/2023).

• Cash flow from operations for 1-9/2024: €18.5M, lower than prior year due to higher net working capital.

• Net debt at period end: €146.6M; net debt to LTM EBITDA: 2.97.

• Return on net working capital (RONWC): 51.1% (45.6%); ROE: 14.1% (9.6%); equity ratio: 33.4% (31.2%).

Outlook and guidance

• Outlook for the rest of 2024 is stable; vehicle aftermarket sector seen as defensive with low cyclicality.

• Inventory and resources are sufficient to meet customer demand.

• Long-term target: pro forma comparable EBITA of €50M by end of 2025.