Interim Report Q3 2024

24 Oct 2024 08:00 CEST

"Positive foundation for growth in both of our business areas despite an unpredictable market."

Revenue, MSEK

694

(580)

Operating margin, %

11.2

(10.7)

EBITA, MSEK

(70)

EBITA margin, %

12.8

(12.1)

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Our interim report for the third quarter of 2024 was published on 24 October. Listen to the presentation where Ulf Lilius, CEO and Niklas Enmark, CFO present the report and provide an update on operations. Below you’ll also find the separate Q&A session where Ulf and Niklas answer questions that we have received related to the Q3 report.

CEO comment, Q3 2024

Positive foundation for growth in both of our business areas despite an unpredictable market

During the third quarter, Momentum Group continued to deliver good growth and stability despite challenging market conditions. Our focus on
aftermarket products for Nordic industry continued to yield positive results, and demand was stable in most of our customer segments.

Ulf Lilius, President & CEO

The Group’s operations delivered organic revenue growth of 3 per cent during the quarter. The Group’s revenue increased by a total of 20% year on year, where acquired businesses contributed in particular to this growth. EBITA increased by 27 per cent compared with the same quarter last year and the EBITA margin increased to 12.8 percent (12.1). Year to date, seven companies have been acquired, adding combined annual revenue of approximately SEK 250 million.

Third quarter 2024

Revenue increased by 20% to SEK 694 million (580), of which 3% for comparable units.
Operating profit rose by 26% to SEK 78 million (62), corresponding to an operating margin of 11.2% (10.7).
EBITA increased by 27% to SEK 89 million (70), corresponding to an EBITA margin of 12.8% (12.1).
Profit for the quarter amounted to SEK 55 million (44), corresponding to earnings per share of SEK 1.05 (0.85).

January–September 2024

Revenue increased by 30% to SEK 2,128 million (1,631), of which 3% for comparable units.
Operating profit rose by 25% to SEK 220 million (176), corresponding to an operating margin of 10.3% (10.8).
EBITA increased by 29% to SEK 252 million (195), corresponding to an EBITA margin of 11.8% (12.0).
Profit for the period amounted to SEK 152 million (129), corresponding to earnings per share of SEK 2.95 (2.60).
The return on working capital (EBITA/WC) was 60% (60).
The equity/assets ratio was 33% (33) at the end of the period.
As of 30 September 2024, the number of repurchased shares of series B amounted to 1,053,766.
As of 1 January 2024, the business is divided into the two business areas Industry and Infrastructure.
During the first quarter, PW Kullagerteknik was acquired. During the second quarter, KmK Instrument, Hydjan, WH-Service, Sikama, ZRS Testing Systems and Minrox were acquired.

Events after the end of the period

No significant events have occurred after the end of the period.

A quarterly presentation is available on the company’s website, momentum.group, where Ulf Lilius, CEO and Niklas Enmark, CFO present the report and provide an update on operations.

About Momentum Group

Momentum Group develops and acquires successful, sustainable companies in the Nordic region through active ownership with decentralised profit and business responsibility. The Group consists of a number of companies that together constitute one of the Nordic region’s leading suppliers of industrial components, industrial services and other related services for customers in industry and industrial infrastructure. What the businesses have in common is that they help make customers’ operations easier, safer and more profitable by offering sustainable, long-life products and services with a strong local presence close to customers. The Group generates revenue of approximately SEK 2.8 billion and some 800 employees. Momentum Group’s B share is listed on Nasdaq Stockholm. For more information, please visit momentum.group.

	Q3			Jan-Sep			R12 Sep
	2024	2023	Δ	2024	2023	Δ	2024	2023	Δ
Revenue	694	580	20%	2,128	1,631	30%	2,795	2,125	32%
Operating profit	78	62	26%	220	176	25%	281	228	23%
of which: Items affecting comparability	–	–		–	–		–	–
of which: Amortisation of intangible assets in connection with acquisitions	-11	-8		-32	-19		-41	-23
EBITA	89	70	27%	252	195	29%	322	251	28%
Net profit	55	44	25%	152	129	18%	196	168	17%
Earnings per share before and after dilution, SEK	1.05	0.85	24%	2.95	2.60	13%	3.80	3.35	13%
Operating margin	11.2%	10.7%		10.3%	10.8%		10.1%	10.7%
EBITA margin	12.8%	12.1%		11.8%	12.0%		11.5%	11.8%
Return on working capital (EBITA/WC)							60%	60%
Equity/assets ratio							33%	33%