Prevas publishes the interim report for the third quarter of 2024

Increased growth, access to Finland and a new key acquisition in Denmark

 

Prevas reports increased sales in the third quarter, but with a lower margin, primarily due to lower utilization rates and market challenges in Finland. Sales in the third quarter increased by 13 percent to 351.9 MSEK (311.4).

 

We delivered an EBITA of 26.5 MSEK (31.8) and an EBITA margin of 7.5 percent (10.2). Earnings were weaker than expected at the beginning of the quarter but strengthened in September. The quarter contained one working day more than the third quarter last year, but because it fell during the holiday period, the effect was limited. The market was challenging during the quarter, with shifting demand between different customer segments. During the quarter, we continued to both accelerate and slow down – in some regions with weak demand, we reduced the number of employees to secure our margins, while recruiting and growing in regions with good demand. Through measures taken and continued price increases during the quarter, we have created a good position to increase earnings in the event of normalized utilization.

 

Magnus Welén, CEO

To read the full CEO statement, see the interim report pages 4-5.

 

Quarter July–September 2024

• Net turnover amounted to 351.9 MSEK (311.4), an increase of 40.5 MSEK and 13.0 percent. The increase relates to sales from acquisitions made in 2023 and 2024 by 14 percent and organic growth decreased by less than 1 percent.
• The operating profit EBITA amounted to 26.5 MSEK (31.8), giving an EBITA margin of 7.5 percent (10.2). The quarter had one working day more than the corresponding period last year. As the extra working day occurred during the holiday period, the effect on EBITA was limited.
• The operating profit EBIT amounted to 17.9 MSEK (29.3), giving an EBIT margin of 5.1 percent (9.4). EBIT was negatively affected by acquisition related items by 8.2 MSEK (2.4). EBIT adjusted for acquisition-related items was 26.1 MSEK (31.7), resulting in an adjusted EBIT margin of 7.4 percent (10.2).
• Profit after tax amounted to 9.1 MSEK (22.7).
• Profit per share before dilution was 0.75 SEK (1.74) and after dilution was 0.75 SEK (1.73).
• The cash flow from operating activities amounted to -6.7 MSEK (50.4).

 

Period January–September 2024
 

• Net turnover amounted to 1,154.6 MSEK (1,083.4), an increase of 71.2 MSEK and 6.6 percent. Approximately 20 percent of the growth was organic and the remainder came from acquisitions made in 2023 and 2024.
• The operating profit EBITA amounted to 116.3 MSEK (127.2), giving an EBITA margin of 10.1 percent (11.7). The period had one working day more than the corresponding period of the previous year. As the extra working day occurred during the holiday period, the effect on EBITA was limited.
• The operating profit EBIT amounted to 93.9 MSEK (120.0), giving an EBIT margin of 8.1 percent (11.1). EBIT was negatively affected by acquisition related items by 21.7 MSEK (6.9). EBIT adjusted for acquisition- related costs was 115.6 MSEK (126.9), resulting in an adjusted EBIT margin of 10.0 percent (11.7).
• Profit after tax amounted to 68.4 MSEK (89.5).
• Profit per share before dilution was 5.31 SEK (6.86) and after dilution was 5.31 SEK (6.81).
• The cash flow from operating activities amounted to 83.5 MSEK (123.2).

Significant events during and after the quarter

• Prevas completed the acquisition of Enmac on July 1st, 2024. Through the acquisition, Prevas established a Nordic group with 1,100 employees and operations in Sweden, Norway, Denmark and Finland. For more information about the acquisition, see the note on page 22, the press release from April 23rd, 2024 and the regulatory approval published on June 19th, 2024.
• On October 1st, 2024, Prevas acquired 75 percent of the shares in Design-People, a Danish company at the forefront of industrial and digital product design. The acquisition is expected to have a marginally positive impact on Prevas' earnings per share during the current fiscal year and no acquisition analysis is therefore presented in this report. For more information about the acquisition, see the press release from September 16th, 2024.

Prevas' interim report for the third quarter of 2024 will be available at https://www.prevas.com/Financial-Reporting and is attached to this press release.

Presentation of Prevas’ interim report for the third quarter of 2024

Friday, October 25 at 09.30 press and analyst presentation will be held which can be followed via webcast (https://www.finwire.tv/webcast/prevas/q3-2024/) and through tele conference +46 8 4468 2488 then use Meeting ID: 847 0524 8382.

The presentation is conducted in English by Magnus Welén (CEO) and Helena Burström (CFO) from Prevas AB.

No pre-registration is required.

This information is information that Prevas AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 2024-10-25 08:30 CEST.