Loihde - Better than expected quarter
Loihde reported better than anticipated Q3 results, with sales growing 5% y/y to EUR 31.5m (Evli: 30.6m) and adj. EBITDA amounting to EUR 2.9m (Evli: 2.3m). Growth expectations for the remainder of the year are rather cautious given the market situation and front-loaded revenue from security solutions.
- Group results: Loihde’s net sales were slightly above our expectations. Net sales grew by 5% y/y to EUR 31.5m (Evli: 30.6m), with y/y growth some 3%pts above our expectations. The growth appears to again have been driven by Security Solutions and Cyber, Cloud & Connect. The adj. EBITDA beat our estimates and amounted to EUR 2.9m (Evli: 2.3m), reflecting a margin of 9.3%, slightly below the comparison period margin of 9.7%.
- According to Loihde its security solutions, both as continuous services and project deliveries, continued to grow well. Continuous network and information security services also grew well, while sales of network equipment slowed down noticeably.
- The IT consulting market continues to be challenging, with no significant turn for the better, and revenue in the business area continued to decline.
- The profitability improvement trend leveled of from the first half of 2024, which saw clear improvements from weak comparison period figures. Growth expectations for the remainder of 2024 are rather cautious due to the market situation and revenue from security solutions projects being more front-loaded than in previous years.
- 2024 guidance (reiterated): Group revenue is expected to be on par with the previous year or grow. The Group’s adjusted EBITDA is estimated to improve compared to 2023, when it was EUR 7.6m.