Wetteri (WETTERI) Q3 2024 earnings summary

Executive summary

• Net sales grew 30% year-over-year to EUR 395.3 million in Jan–Sep 2024, mainly via acquisitions, but operational performance weakened due to historically poor market conditions and low consumer confidence.

• Adjusted EBITDA for Jan–Sep was EUR 17.0 million (down 3% year-over-year), and adjusted operating profit was EUR 5.4 million (down 35%).

• The sale of Wetteri Power Oy for approx. EUR 32.5 million will strengthen the balance sheet and support future growth and acquisitions.

Financial highlights

• Q3 2024 revenue was EUR 119.6 million, up 8% year-over-year; adjusted EBITDA EUR 6.2 million (down 9%), adjusted operating profit EUR 2.1 million (down 35%).

• Jan–Sep 2024: EBITDA EUR 15.0 million (down 5%), operating profit EUR 1.7 million (down 61%), profit before tax EUR -7.3 million.

• Earnings per share from continuing operations was EUR -0.04 for Jan–Sep 2024.

• Equity ratio at 17%, net debt EUR 137.2 million, gearing 377%.

Outlook and guidance

• Updated 2024 guidance: revenue EUR 520–640 million, adjusted operating profit EUR 12.8–15.6 million.

• Medium-term (3-year) target: EUR 1,000 million in revenue and EUR 30 million in operating profit.

• Market for new cars expected to recover in 2025 with a forecasted 10% increase in demand; used car and maintenance business expected to remain strong.