SECITS (SECI) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was 22,294 KSEK, down from 23,804 KSEK in Q3 2023, reflecting a smaller B2C sales force but improved B2C profitability and product mix.

• EBITDA turned positive at 1,208 KSEK versus -1,123 KSEK last year, driven by cost reductions of 3.8 MSEK in the quarter.

• Despite operational improvements, high debt and liquidity issues led to restructuring for two subsidiaries and the parent company, and bankruptcy for Secits Sweden AB.

Financial highlights

• Q3 net income per share was -0.01 SEK, improved from -0.12 SEK in Q3 2023.

• Cash flow from operations before working capital changes was 1,275 KSEK, up from -3,543 KSEK last year.

• Soliditet (equity ratio) at quarter-end was 8.8%, down from 14.7% a year earlier.

• Liquidity at period end was 563 KSEK, compared to 655 KSEK in Q3 2023 and 11,729 KSEK at 2023 year-end.

• Operating costs excluding depreciation fell by 3.8 MSEK year-over-year.

Outlook and guidance

• Further cost savings are expected to take effect from January 2025.

• Management and the board believe the restructured entities are viable and can generate returns post-restructuring.

• The fourth quarter is typically the strongest for sales, while Q3 is seasonally weakest.