Seamless Distribution Systems (SDS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 53.4m, down 16.8% year-over-year, but core SDS business grew 5.3% to SEK 51.9m.

• EBITDA for Q3 increased 13.4% to SEK 14.4m, with margin rising to 27.0% from 19.8% year-over-year.

• Net result after tax for Q3 was SEK -10.0m, unchanged EPS at SEK -0.65.

• Largest contract ever signed in Bangladesh (SEK 44.8m) and a major Smart Capex deal (SEK 18m) with a top-10 global telecom operator.

• SEK 25m capital injection and bond refinancing to 2027 at a reduced 9% fixed rate, improving financial flexibility.

Financial highlights

• Q3 net sales: SEK 53.4m (down 16.8% y/y); core SDS sales: SEK 51.9m (up 5.3% y/y).

• Q3 EBITDA: SEK 14.4m (up 13.4% y/y); EBITDA margin: 27.0% (19.8%).

• Q3 EBIT: SEK 2.9m (up from SEK 0.7m y/y); net result after tax: SEK -10.0m.

• 9M 2024 net sales: SEK 169.3m (down 18.0% y/y); core SDS sales: SEK 163.1m (up 3.6% y/y).

• 9M 2024 EBITDA: SEK 56.3m (up 22.7% y/y); EBITDA margin: 33.2% (22.3%).

Outlook and guidance

• Two delayed projects expected to add SEK 10m to Q4 sales; order intake already exceeds full-year 2022 and 2023.

• Management confident in reaching annual order intake target of USD 9m for new projects.

• Transformation towards profitable, cash-generating growth supported by improved capital structure.