Umida (UMIDA) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw 34% year-over-year growth in net sales (excl. excise), driven by the Joluca functional drinks launch, which exceeded initial sales estimates and now represents 47% of quarterly net sales.

• Gross margin improved to 42% from 21% last year, with EBITDA margin at 13%, surpassing the long-term 10% target.

• Cash flow from operations turned positive at 6.3 MSEK, and a successful options issue post-quarter added 9.2 MSEK in liquidity, reducing bank debt.

• Systembolaget's share of sales dropped to 21% (from over 50%), with grocery/wholesale now at 76%, aligning with the strategy to diversify sales channels.

Financial highlights

• Q3 net sales (excl. excise): 25.2 MSEK (18.8 MSEK), +34% year-over-year; 9M 2024: 54.4 MSEK (+3%).

• Q3 gross profit: 10.7 MSEK (4.0 MSEK), +168%; gross margin: 42% (21%).

• Q3 EBITDA: 3.3 MSEK (-1.3 MSEK); EBITDA margin: 13%.

• Q3 operating income: 2.2 MSEK (-2.1 MSEK); net income: 1.5 MSEK (-2.5 MSEK).

• 9M 2024 net income: -1.3 MSEK (-7.4 MSEK); cash flow from operations: -0.9 MSEK (improved by 4.8 MSEK).

Outlook and guidance

• Joluca's full-year sales forecast raised to 20–25 MSEK after Q3 outperformed initial 10–12 MSEK estimate.

• Management expects a strong finish to 2024 and a much stronger financial position entering 2025.

• Continued focus on expanding Joluca distribution, new product launches, and further reducing dependency on Systembolaget.