New Nordic Healthbrands AB: Q3 2024 Financial Performance Shows Decline Amidst Market Challenges
New Nordic Healthbrands AB has released its Q3 2024 financial report, revealing a decline in key performance indicators compared to previous quarters.
Sammanfattning
New Nordic Healthbrands AB's Q3 2024 report shows a decrease in net sales and operating profit, with challenges in Denmark and Sweden impacting overall performance. Despite positive sales growth in certain markets, the company faces pressures from inventory adjustments and market conditions.
New Nordic Healthbrands AB: Q3 2024 Financial Performance Shows Decline Amidst Market Challenges
New Nordic Healthbrands AB has released its Q3 2024 financial report, revealing a decline in key performance indicators compared to previous quarters. The company, known for its dietary supplements, natural medicines, and cosmetics, has faced difficulties in its key markets of Denmark and Sweden, contributing to a less than satisfactory financial outcome for the quarter.
Key Financial Performance Indicators
| KPI | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (SEK million) | 129.6 | 135.1 | -4.1% |
| Operating Profit (SEK million) | 0.3 | 3.1 | -90.3% |
| Net Income (SEK million) | -1.8 | 2.0 | -190.0% |
| Earnings per Share (SEK) | -0.28 | 0.33 | -184.8% |
| Gross Margin (%) | 66.4 | 66.8 | -0.4pp |
| Cash Flow from Operations (SEK million) | -0.9 | -0.2 | -350.0% |
Analysis of Financial Trends
The third quarter of 2024 saw a 4.1% decrease in net sales compared to the same period last year, reflecting a challenging market environment. Operating profit dropped significantly by 90.3%, resulting in a negative net income of SEK -1.8 million. This was attributed to reduced sales in Denmark and Sweden, which have traditionally been strong markets for New Nordic.
CEO Karl Kristian Bergman Jensen highlighted the cautious purchasing behavior of retailers in these key markets, as well as the impact of inventory adjustments. Despite these challenges, the company reported growth in the UK, USA, and Germany, driven by successful product innovations and marketing strategies.
Conclusion
New Nordic's financial performance in Q3 2024 reflects the ongoing challenges in its core markets, particularly Denmark and Sweden. While the company has made strides in other regions, the overall financial health remains impacted by external market pressures and internal inventory management issues. Investors should monitor the company's efforts to stabilize and grow its market share in these challenging environments.
Overall Company Analysis
Despite the current financial setbacks, New Nordic Healthbrands AB continues to innovate and expand its product offerings. The company's focus on 'Power Categories' and new product launches in various international markets shows promise for future growth. However, the need to address operational inefficiencies and market-specific challenges remains critical for sustained profitability.
Källa
Sammanfattning
During the third quarter of 2024, New Nordic Healthbrands AB experienced a 4.1% decrease in net sales to SEK 129.6 million, with a gross margin decline to 66.4% and a reduction in gross profit to SEK 86.1 million. Operating profit fell to SEK 0.3 million, and the period's profit after tax decreased to SEK -1.8 million. Cash flow from operations was negative at -0.9 MSEK. For the first nine months of 2024, net sales increased by 2.4% to SEK 400.7 million, while the gross margin slightly decreased to 65.1%. The operating result worsened to -5.4 MSEK, and the period's profit after tax was SEK -9.6 million. Cash flow from operations was -16.6 MSEK. CEO Karl Kristian Bergman Jensen noted that while there was growth in the first half of the year, it slowed in August and September. Sales increased by 2.4% in the first nine months, with high consumer demand but cautious purchasing in Sweden and Denmark. Initiatives to boost turnover in these countries are underway. New product introductions in the UK and increased sales in the USA and Germany contributed positively. Changes in the Benelux and Central Asia markets impacted profitability, but are expected to benefit future sales. The US market returned to profitability, and Canada is now the largest market. In Asia, progress was made, but sales to China slowed due to inventory buildup. New Nordic focuses on "Power Categories" for growth. Despite unsatisfactory results, the company expects improvements and maintains control over costs and inventory. Future profitability is anticipated, supporting continued growth ambitions.
