Waystream Group (WAYS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 5.2% to SEK 25.4m compared to Q3 2023, with a negative EBIT of SEK -2.7m due to a sluggish European fiber market and lower gross margin from product mix.

• Growth of 5% in the Nordics and Baltics was driven by operator sales, while Central Europe saw a 33% sales decline year-over-year.

• Inventory of finished goods reduced by SEK 7m to SEK 37m, supporting liquidity and cash flow.

• Cost optimization program initiated in Q2 is expected to yield full effect from Q4 2024.

Financial highlights

• Q3 2024 net sales: SEK 25.4m (down 5.2% YoY); nine months: SEK 94.1m (up 15.1% YoY).

• Q3 gross profit: SEK 12.0m (down 31.7% YoY); gross margin: 37% (down from 55%).

• Q3 EBITDA: SEK -1.3m (Q3 2023: SEK 2.9m); Q3 EBIT: SEK -2.7m (Q3 2023: SEK 1.3m).

• Q3 net result: SEK -2.3m (Q3 2023: SEK 0.8m); EPS: SEK -0.28 (Q3 2023: SEK 0.09).

• Cash flow from operations Q3: SEK 0.5m (Q3 2023: SEK 6.2m); cash and bank at period end: SEK 3.9m.

Outlook and guidance

• Full effect of cost savings expected from Q4 2024, aiming to restore profitability and competitiveness.

• Recent large order in Germany (SEK 27m) to be delivered mainly in 2025, improving market position.

• Management remains focused on increasing sales and optimizing cost structure to achieve financial targets over time.