Q3 2024: Solid growth and strengthened earnings

• Net sales increased by 13.6 percent to SEK 717.1 million (631.4),
  of which organic growth for equivalent units amounted to 7.5 percent.
• EBITA increased by 37.5 percent to SEK 69.4 million (50.5), and the
  EBITA margin increased to 9.7 percent (8.0).
• EBIT increased by 48.4 percent, amounting to SEK 55.0 million (37.0).
• Cash flow from operating activities amounted to SEK 55.9 million (0.8).
• Acquisition of the Norwegian infrastructure company ST Entreprenør AS with
  approx. SEK 130 million in sales for 2023; consolidation has occurred in Q4 2024.
• Completed book-building of four-year secured convertible bonds of SEK 550 million,
  of which SEK 428 million was issued during the quarter.
• Issuance of three-year senior-covered bonds 2024/2027 of SEK 1,250 million within a framework of SEK 2,000 million.
• Financial targets for growth and profitability have been updated and adopted to reflect Novedo’s business plan for 2024–2028.

Period (January–September 2024)

• Net sales increased by 11.9 percent to SEK 2,172.8 million (1,942.1),
  of which organic growth for equivalent units amounted to 2.7 percent.
• EBITA increased by 17.5 percent to SEK 219.4 million (186.8),
  and the EBITA margin amounted to 10.1 percent (9.6).
• EBIT increased by 20.0 percent and amounted to SEK 176.3 million (146.9).
• Cash flow from operating activities amounted to SEK 92.4 million (69.4).
• Company acquisitions with total annual sales for 2023 of SEK 147 million completed,
  of which ST Entreprenør AS, with annual sales of SEK 130 million, has been consolidated
  in Q4 2024.
• Mikael Ericsson was elected as the board’s new Chairman at the 2024 AGM,
  and Jonas Söderkvist took over as the new CFO at the end of August 2024.

Significant events after the balance sheet date

• Early redemption of bond loan 2021/2024 occurred on October 4, 2024.

Per-Johan Dahlgren, President & CEO, comments on the period January–September 2024:
Novedo's growth and earnings for the period January–September 2024 are summarized with solid growth and strengthened earnings. Net sales increased by 11.9 percent, of which 2.7 percent was organic growth, and amounted to SEK 2,172.8 million for the nine-month period and to 2,938.9 million for R12 months at the end of the period.

Our geographical expansion is increasingly impacting the Group's sales from countries outside Sweden, which amounted to 28.1 percent for the nine-month period, most of which came from our Danish operations. During the third quarter, we also completed our first Norwegian acquisition: the infrastructure company ST Entreprenør AS, with annual sales of SEK 130 million. Novedo has several company acquisitions under evaluation, and I see good growth opportunities in all segments, both in existing and new geographic markets.

Novedo’s diversification into three business segments and geographical spread makes us resilient in a tough market climate, which is confirmed by an EBITA margin of 10.4 percent for R12 months.

I assess that the market climate will also be uncertain and challenging in the first half of 2025, as demand will vary per segment and, to some extent, per geography. However, Novedo's subsidiaries’ established market positions and long history mean that Novedo is well-equipped to handle and take advantage of a tougher market in the short term. With the quarter's completed financing activities, we have achieved solid financing and look forward to developing Novedo in the long term.