VBG Group (VBG) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales declined by 12% to SEK 1,272.9M, with organic growth at -11.5% due to lower demand, especially in North America.

• EBITA for Q3 fell to SEK 171.8M (13.5% margin), and EPS dropped 29.3% to SEK 4.49.

• Gross margin improved across all divisions despite lower volumes, supported by efficiency gains, cost management, and product mix improvements.

• Operating cash flow remained stable at SEK 153 million in Q3 and SEK 502.3M for nine months, with a strong net cash position.

• Year-to-date turnover increased by 0.3%, with organic growth turning negative at -1.8%.

Financial highlights

• Q3 2024 net sales: SEK 1,272.9M (-11.6% YoY); EBITA: SEK 171.8M (13.5% margin); profit after tax: SEK 112.3M.

• EBITDA decreased by almost 24% year-over-year, impacted by lower sales and less favorable FX effects.

• Earnings per share fell by nearly 29% to SEK 4.49 in the quarter.

• EBITDA for the first nine months reached SEK 648.2M, with a margin of 15.1%, above the group target.

• Interest-bearing net debt/EBITDA improved to 0.20 from 0.45 YoY.

Outlook and guidance

• Market conditions are expected to remain soft, with no significant improvement anticipated in Q4.

• No formal forecast provided for 2024; management expects continued market volatility and geopolitical unrest.

• Order intake visibility is three to four months, and management does not foresee drastic changes in demand.

• The group is prepared for continued uncertainty, especially in the U.S. consumer market.