LEAX Interim Financial Report Q3 2024
Even with challenging market conditions, we remain focused on long-term profitability
The third quarter in summary
• Net Sales decreased to SEK 407.4 million (457.9)
• Operating profit decreased to SEK -18.6 million (-12.6)
• Earnings before tax (EBT) decreased to SEK -31.0 million (-30.3)
• Net income for the period decreased to SEK -34.1 million (-33.1)
• Cash flow from operating activities amounted to SEK 8.2 million (20.1)
The first nine months in summary
• Net Sales decreased to SEK 1,510.2 million (1,605.2)
• Operating profit decreased to SEK -18.5 million (39.7)
• Earnings before tax (EBT) decreased to SEK -54.2 million (13.1)
• Net income for the period decreased to SEK -59.5 million (4.0)
• Cash flow from operating activities amounted to SEK 62.0 million (123.0)
Comments from the Group President and CEO, Roger Berggren;
During the third quarter, the European market has declined due to a significant drop in demand compared to previous quarters of the year, but also compared to the third quarter of last year. The downturn in the market has led to major challenges, while we continue to focus on strengthening long-term profitability. We do this through investments in new projects and through cost savings.
The downturn in the European market has had a significant impact on both our net sales and operating profit, with net sales of SEK 407.4 million, down from SEK 457.9 million in Q3 2023. However, growth continues in the South American market, and also our commercial positioning in the defence industry.
Looking ahead, we are optimistic about several new projects in our heavy commercial vehicle market that will be launched in Q4 and beyond. These projects are expected to generate additional revenues, reinforcing our belief in a more favourable outlook going forward.
In the third quarter, our operating result amounted to SEK -18.6 million compared to SEK -12.6 million in the previous year, reflecting the difficult conditions in several key sectors. Our focus on cost efficiency measures and maintaining operational discipline has continued during the period. We remain committed to our priority of strengthening our commercial position in our core and emerging markets, particularly in the defence industry, where we see promising potential for continued growth.
Even with challenging market conditions, we are making steady progress on initiatives to drive long-term profitability. Our ongoing cost-saving measures are on track to deliver an expected annual profit improvement of more than SEK 100 million. These efforts are crucial to secure LEAX competitive advantage and prepare for a more resilient future.
Roger Berggren, Group President and CEO
Telephone: +46 (0)70 655 99 71
E-mail: roger.berggren@leax.com
Jonas Lundberg, CFO
Telefon: +46 (0)70 453 58 14
E-mail: jonas.lundberg@leax.com
About LEAX
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1,100 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The Group designs, develops and industrializes advanced manufacturing solutions and superior products for global mobility and industrial markets. The Group had sales of SEK 2.2 billion in 2023.