Servana (SERV) Q3 2024 earnings summary

Executive summary

• Sales increased for the eighth consecutive quarter, with a 27% rise in Q3 2024 compared to Q3 2023, driven by strong growth in Denmark and cost control measures.

• Strategic focus remains on expanding in Denmark, with new installations and ongoing contract negotiations with additional municipalities.

• A rights issue in September raised SEK 4.9 million after costs, supporting continued market development and expansion.

• The planned acquisition of Norwegian Med Things AS was canceled after negotiations ended in November.

Financial highlights

• Q3 2024 net sales: SEK 1,225k (up 27% from SEK 964k in Q3 2023); nine-month net sales: SEK 3,463k (up 30% from SEK 2,658k in 2023).

• Q3 2024 result after financial items: SEK -2,730k (improved from SEK -3,044k in Q3 2023); nine-month result: SEK -9,450k (improved from SEK -10,374k in 2023).

• Cash and cash equivalents at September 30, 2024: SEK 3,269k (SEK 2,164k in 2023).

• Operating costs for Q3 2024 decreased by 3% year-over-year, mainly due to lower external consultant and personnel expenses.

• Cash flow from operations in Q3 2024: SEK -722k (improved from SEK -2,182k in Q3 2023).

Outlook and guidance

• Continued focus on expanding in Denmark, with capital from the rights issue allocated to installations and new tenders.

• Ongoing efforts to establish partnerships and pilot projects in Sweden, Norway, and Finland, with a key agreement signed with ApoEx in Sweden.

• Strategic priorities include new collaborations and strengthening sales in Denmark to drive further expansion.