Selvaag Bolig (SBO) Q3 2024 earnings summary

Executive summary

• Sold 100 units in Q3 2024, valued at NOK 679 million, with 446 units sold in the first nine months, outperforming last year's full-year sales.

• Q3 results impacted by only 54 units delivered, down from 74 last year, leading to lower revenue and profit margins.

• Sales in Q3 were higher than Q3 2023 but below the previous two quarters.

• Order backlog at quarter-end was 700 units valued at NOK 4,495 million, with 67% sold.

• Increased number of units under construction, with further growth expected.

Financial highlights

• IFRS revenue of NOK 225 million in Q3 2024, down from NOK 437 million in Q3 2023 due to low number of unit deliveries.

• Adjusted EBITDA of NOK 4 million (Q3 2023: NOK 44 million); EBITDA margin at 1.6% (Q3 2023: 10.1%).

• Net loss of NOK 0.05 per share, compared to NOK 0.21 EPS in Q3 2023.

• Net cash flow from operations negative NOK 101 million, mainly due to inventory build-up.

• Equity ratio at 49.4% at quarter-end.

Outlook and guidance

• 67% of NOK 4.5 billion in production value sold by quarter-end; 85% of 2024 completions sold.

• Guiding for 374 unit deliveries in 2025, with results for 2025 largely secured.

• Well-positioned with robust land portfolio and strong land purchasing capacity.

• Expecting increased activity and volume as market conditions improve and interest rates fall.

• More construction and sales starts planned if positive market momentum continues, but macroeconomic uncertainty may impact new project launches.