In This Article:
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Organic Growth: Negative 0.8% in Q3 2024, a decrease of EUR7.2 million compared to Q3 2023.
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Professional Business Organic Growth: Negative 4.3% in Q3 2024.
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Service Business Organic Growth: Negative 1.6% in Q3 2024.
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Consumer Business Organic Growth: 22% in Q3 2024.
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Specialty Business Organic Growth: 20.1% in Q3 2024.
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EMEA Organic Growth: 6.7% in Q3 2024.
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Americas Organic Growth: Negative 10.5% in Q3 2024.
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APAC Organic Growth: Negative 6% in Q3 2024.
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Revenue: EUR240.6 million in Q3 2024, a decrease of EUR7.2 million from Q3 2023.
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Gross Margin: 42.4% in Q3 2024, up from 41.2% in Q3 2023.
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EBITDA Margin Before Special Items: 12.6% in Q3 2024, unchanged from Q3 2023.
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EBITDA Before Special Items: EUR30.4 million in Q3 2024.
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Free Cash Flow: EUR7.4 million in Q3 2024.
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Net Interest-Bearing Debt: EUR257.7 million at the end of Q3 2024.
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Financial Gearing: 1.9 at the end of Q3 2024.
Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nilfisk Holding AS (FRA:NF1) reported strong organic growth in its specialty and consumer businesses, with 20.1% and 22% growth respectively.
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The EMEA region delivered strong organic growth of 6.7%, driven by positive contributions across the business.
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The company maintained its EBITDA margin before special items at 12.6%, consistent with the previous year.
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Nilfisk Holding AS (FRA:NF1) achieved its highest gross margin since the launch of Business Plan 2026, reaching 42.4% in Q3 2024.
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The company successfully launched new products, SC25 and SC550, with positive initial feedback and ongoing sales expected to ramp up in 2025.
Negative Points
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Nilfisk Holding AS (FRA:NF1) experienced a negative organic growth of 0.8% in Q3 2024, primarily driven by a decline in the professional business.
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The Americas and APAC regions reported negative organic growth of 10.5% and 6% respectively, impacting overall performance.
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Temporary shipment delays in the US due to the SAP rollout affected revenue by approximately EUR7 million.
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The company revised its financial outlook for 2024, indicating that performance falls short of the trajectory required to meet 2026 financial targets.
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Nilfisk Holding AS (FRA:NF1) expects a loss of revenue of around EUR6 million in 2024 due to disruptions caused by Hurricane Milton in Florida.
Q & A Highlights
Q: What are the reasons behind Nilfisk's underperformance in the US market, and how does the company plan to address this issue? A: Jon Sintorn, CEO, acknowledged that the performance in the US was below expectations. He mentioned that the company needs to improve its go-to-market strategy, product portfolio, and capabilities to address changing market dynamics, such as dealer consolidation. He emphasized that these are not quick fixes but expressed confidence in driving positive business direction in the future.