Condo Nordic Holding AB (publ) – Interim report Q3 2024

Monthly growth of sales resulted in an all-time high Q3

Condo Nordic Holding experienced excellent revenue growth in the third quarter of 2024. The total net sales in Q3 were 55% higher than in Q3/2023 (14 914 kSEK vs 9 643 kSEK), making Q3/2024 the best-ever quarter in the company's history regarding net sales.

In July and August, net sales reached record highs for these months, while September also showed strong performance, marking the second-best September in the company's history for net sales.

1 July – 30 September 2024

•   Net sales for the period 14,915 (9,643) kSEK

•   EBITDA of 742 (2,238) kSEK

•   Adjusted operating profit after financial items, taking into account items affecting comparability,

-814 (1,881) kSEK, equaling a margin of -5.5% (19.5)

•   Cash flow from operations before changes in working capital amounted to 518 (2,200) kSEK.

•   Operational cash flow amounted to 696 (1,458) kSEK.

1 January – 30 September 2024

•   Net sales for the period 29,384 (27,834) kSEK

•   EBITDA of -5,623 (4,461) kSEK

•   Adjusted operating profit after financial items, taking into account items affecting comparability,

-3,562 (3,245) kSEK, equaling a margin of -12.1% (11.7)

•   Cash flow from operations before changes in working capital amounted to -1,059 (3,829) kSEK

•   Operational cash flow amounted to 574 (5,430) kSEK

Financial summary [kSEK]	Q3 2024	Q3 2023	Jan-Sep 2024	Jan-Sep 2023
Net sales	14,915	9,643	29,384	27,834
EBITDA	742	2,238	-5,923	4,461
EBITDA margin	5.0 %	23.2 %	-20.2 %	16.0 %
Adjusted operating profit after financial items taking into account items affecting comparability*	-814	1,881	-3,562	3,245
Adjusted profit margin, taking into account items affecting comparability*	-5.5 %	19.5 %	-12.1 %	11.7 %
Number of shares, end of period	20,407,347	-	20,407,347	-
Earnings per share, SEK	neg		neg

Q3 Significant events

•    The sales team has been enhanced with a renewed focus on the Swedish market.

•    Additionally, we implemented organisational and warehouse streamlining, resulting in cost savings of EUR 10,000 per month compared to the previous setup.

Significant events after the End of the Quarter

The company has updated its pricing to reflect increased lease expenses for Q3 2024.

CEO comments

Laying a Strong Foundation for Sustainable and Profitable Growth

This quarter marked a significant milestone as Condo completed its first full quarter as a listed company. I am pleased to report that the positive growth trajectory we initiated in Q2 has continued to accelerate. Revenue growth in July, August, and September was substantial, with year-on-year increases that reflect the strength of our business model and market positioning. 

However, rising lease costs across Finland have pressured our sales margins. While price adjustments are planned and take effect by year-end, these dynamics underscore the importance of our efforts to build resilience into our operations. 

We are excited about our preparations to enter the Swedish market, which we hope to launch soon. This expansion represents a crucial step in our long-term strategy to establish Condo as a leading provider of project accommodation solutions across the Nordic region. 

Business Highlights 

The original business was founded in 2017; Condo’s business in Finland specialises in providing tailored housing solutions for project teams, serving corporate clients with stays ranging from several months to years. Our customer base is built on trust, supported by a robust network of lease providers in Finland and partnerships across Europe. In addition to project accommodation, our parent company, Condo Nordic Holding AB, is developing a portfolio of permanently furnished apartments in major cities to address the growing demand for short-term accommodation among retail customers. 

Q3/2024 Performance 

The growth momentum from late Q2 carried through into Q3, with Condo achieving a remarkable 55% year-on-year increase in total revenue for the quarter. Based on our current outlook, we anticipate total revenue for 2024 to fall within the range of SEK 35–40 million, in line with the guidance provided in our listing memorandum. 

While operational cash flow stood at SEK 0.7 million compared to SEK 1.5 million last year, this reflects ongoing growth and market expansion investments. Cash flow from operations before changes in working capital was SEK 0.5 million, compared to SEK 2.2 million in the previous year.  

Market Drivers 

Condo Nordic Holding AB has identified key trends driving demand for our offerings: 

1. Preference for Longer Stays: Furnished apartments provide a comfortable and spacious environment, ideal for extended stays. 
2. Diversification of Accommodation Options: Travelers and businesses increasingly seek alternatives to traditional hotels, valuing the homelike experience of furnished apartments. 
3. Rise in Business Travel: Corporate clients prioritise cost-efficient, long-term housing solutions for their teams, particularly in non-cyclical industries. 
4. Prime Locations: Our apartments are strategically located in city centres and residential areas, offering convenience and access to local amenities. 
5. Focus on Privacy and Independence: Fully furnished apartments offer privacy and functionality. They feature separate living spaces and fully equipped kitchens for greater autonomy. 

By staying attuned to these market dynamics and leveraging our strengths, we can drive sustainable growth and create lasting value for our shareholders. 

This disclosure contains information that Condo Nordic Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-11-2024 09:00 CET.