SyntheticMR (SYNT) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 fell 39% year-over-year to 13.3 MSEK, mainly due to organizational changes in North America.

• Operating profit for Q3 was -5.3 MSEK, down from 4.5 MSEK last year, with an operating margin of -40%.

• Net profit for Q3 was -6.9 MSEK, compared to 4.1 MSEK in Q3 2023; EPS was -0.15 SEK.

• Growth in Japan and South Korea met expectations, while North America underperformed.

• SyMRI 3D received regulatory approvals in the UK, Taiwan, Switzerland, and Australia.

Financial highlights

• Q3 net sales: 13.3 MSEK (21.7 MSEK in Q3 2023); nine-month sales: 43.0 MSEK (59.1 MSEK in 2023).

• Q3 operating profit: -5.3 MSEK (4.5 MSEK in Q3 2023); nine-month operating profit: -10.9 MSEK (5.3 MSEK in 2023).

• Q3 net profit: -6.9 MSEK (4.1 MSEK in Q3 2023); nine-month net profit: -10.8 MSEK (5.4 MSEK in 2023).

• Cash flow from operating activities in Q3: -1.3 MSEK (2.0 MSEK in Q3 2023); cash and cash equivalents at period end: 16.6 MSEK (27.8 MSEK in 2023).

• Operating expenses increased due to investments in commercial resources and activities.

Outlook and guidance

• Management expects gradual improvement in North America from Q4 as new hires settle in.

• Positive market response and regulatory approvals support optimism for a return to growth.

• Increased marketing and sales activities planned with partners to drive adoption.