Boreo Oyj Faces Challenging Market Conditions: Financial Performance Declines in Q3 2024
Boreo Oyj, a Finnish company listed on Nasdaq Helsinki, recently released its Q3 2024 interim report, highlighting a challenging market environment and a decline in financial performance.
Sammanfattning
Boreo Oyj's Q3 2024 report reveals a significant decline in net sales and profitability, with net sales dropping by 31% and operational EBIT decreasing by 40% compared to Q3 2023. Despite cost-saving measures, the company's financial performance remains below expectations. The report also outlines Boreo's strategic focus on long-term profit generation through acquisitions and ownership of entrepreneurial companies.
Boreo Oyj Faces Challenging Market Conditions: Financial Performance Declines in Q3 2024
Boreo Oyj, a company listed on Nasdaq Helsinki, has released its interim report for Q3 2024, revealing a challenging market environment that has impacted its financial performance. The company's net sales and profitability have significantly declined compared to the previous year, despite ongoing cost-saving measures and strategic initiatives.
Key Performance Indicators (KPIs)
| KPI | Q3/2024 | Q3/2023 | Change |
|---|---|---|---|
| Net Sales (EUR million) | 28.4 | 41.0 | -31% |
| Operational EBIT (EUR million) | 1.8 | 2.9 | -40% |
| EBIT (EUR million) | 1.1 | 2.0 | -43% |
| Profit Before Taxes (EUR million) | 0.4 | 1.4 | -73% |
| Profit for the Period (EUR million) | 0.3 | 1.0 | -66% |
| Net Cash Flow from Operating Activities (EUR million) | 0.7 | 4.9 | -86% |
| Equity Ratio (%) | 41.0% | 34.9% | +6.1% |
| Net Debt (EUR million) | 34.9 | 36.5 | -4% |
| Operational EPS (EUR) | 0.10 | 0.48 | -80% |
Comparison with Older Reports
| KPI | Q3/2024 | Q2/2024 | Change |
|---|---|---|---|
| Net Sales (EUR million) | 28.4 | 33.8 | -16% |
| Operational EBIT (EUR million) | 1.8 | 2.4 | -25% |
| EBIT (EUR million) | 1.1 | 1.6 | -31% |
| Profit Before Taxes (EUR million) | 0.4 | 1.0 | -60% |
| Operational EPS (EUR) | 0.10 | 0.31 | -68% |
Conclusion
Boreo Oyj's Q3 2024 financial results highlight the company's struggle in a challenging market environment. With a significant drop in net sales and profitability, Boreo's strategic focus on cost-saving measures and long-term profit generation through acquisitions has yet to yield the desired financial improvements. The company's high net debt and weak cash flow further complicate its financial standing. Investors may need to exercise caution as Boreo navigates these turbulent times, focusing on strategic cost reductions and market diversification to improve performance.
Källa
Sammanfattning
Boreo Plc's interim report for January to September 2024 indicates a challenging financial environment. The company focuses on long-term profit through acquiring and developing entrepreneurial companies. Despite a 31% drop in Q3 net sales compared to the previous year, Boreo managed to maintain profitability with an operational EBIT of EUR 1.8 million, supported by cost savings. Fixed costs decreased significantly, and the gross margin improved to 32%. However, profitability was affected by increased trade working capital and decreased profits. The company's return on capital employed and return on trade working capital both declined. Boreo remains confident in its business model and strategy, anticipating future earnings growth as market conditions improve. The company does not provide short-term financial guidance but aims for sustainable earnings growth with attractive returns on capital. A webcast presentation of the financial statements was scheduled for October 31, 2024. Boreo is listed on Nasdaq Helsinki and focuses on the Electronics and Technical Trade sectors, employing over 300 people across seven countries.