Söder Sportfiske (SODER) Q3 2024 earnings summary

Executive summary

• Net sales increased by 9.4% to 65.9 MSEK in Q3 2024, with organic growth of 9.4% and a return to positive growth in Sweden for the first time since Q3 2021.

• International sales grew 23.5% in the quarter, while Swedish sales rose 4.5%, marking a trend reversal in the domestic market.

• EBITDA reached 7.2 MSEK with a margin of 10.9%, and EPS improved to 0.54 SEK compared to 0.47 SEK in Q3 2023.

• The company maintains a strong cash position, with net cash of 34.6 MSEK at quarter-end.

• Daniel Hörnqvist appointed as new CEO, expected to assume the role by April 2025.

Financial highlights

• Q3 2024 net sales: 65.9 MSEK (up 9.4% year-over-year); 9-month sales: 179.4 MSEK (up 3.7%).

• Q3 gross margin: 40.7% (down from 42.4%); EBITDA: 7.2 MSEK (10.9% margin); EBIT: 5.7 MSEK (8.7% margin).

• 9-month EBITDA: 14.9 MSEK (8.3% margin); EBIT: 10.5 MSEK (5.9% margin); EPS: 0.94 SEK (up from 0.83 SEK).

• Cash flow from operations in Q3: 6.2 MSEK (vs. -0.4 MSEK last year); cash at period end: 34.6 MSEK.

• Inventory as a share of sales decreased to 26.0% from 29.1% year-over-year.

Outlook and guidance

• Management aims to sustain organic growth in Sweden and accelerate international expansion, with a focus on strategic investments in maturing markets.

• The company plans to enhance sales and marketing efforts, leveraging a new logistics platform and larger facilities.

• Seasonal variations expected, with Q2 and Q3 typically being the strongest quarters.