FINANCIAL INFORMATION:
THIRD QUARTER
- Net sales amounted to SEK 1,978 million (1,811), an increase of 9% compared to the corresponding period last year. Organic growth amounted to 10%.
- EBITA amounted to SEK 146 million (132).
- EBIT amounted to SEK 96 million (85).
- Adjusted EBITA amounted to SEK 154 million (139), an increase of 11% compared to the corresponding period last year.
- Cash flow from operating activities amounted to SEK 142 million (175).
- Profit after tax amounted to SEK 27 million (-91).
- Basic and diluted earnings per share amounted to SEK 0.06 (-0.20).
NINE MONTHS
- Net sales amounted to SEK 5,678 million (5,114), an increase of 11% compared with the corresponding period last year. Organic growth amounted to 11%.
- EBITA amounted to SEK 418 million (391).
- EBIT amounted to SEK 271 million (252).
- Adjusted EBITA amounted to SEK 422 million (361), an increase of 17% compared to the corresponding period last year.
- Cash flow from operating activities amounted to SEK 153 million (802).
- Profit after tax amounted to SEK 82 million (-95).
- Basic and diluted earnings per share amounted to SEK 0.18 (-0.27).
SIGNIFICANT EVENTS:
IN THE THIRD QUARTER
- Humble Group's Board of Directors decided to adopt new financial targets. The new targets aim to reflect the company's ambitions for growth and profitability as well as its medium-term business plan.
- On September 27, Humble Group changed its listing from First North to Nasdaq Stockholm Main Market.
AFTER THE QUARTER
- No significant events have occurred after the third quarter.
CEO WORDS FROM THE REPORT
"HIGH DEMAND AND IMPROVED PROFITABILITY
We delivered a good result in the third quarter of the year, with net sales increasing to SEK 1,978 million (1,811) and organic growth of 10.3 percent. Adjusted EBITA amounted to SEK 154 million (139), corresponding to an adjusted EBITA margin of 7.8 percent. Demand for our products at consumer level remains high and we are seeing a continuous inflow of new distribution agreements, not least with the largest chains. We are now entering our seasonally most intensive quarter, while we have full focus on executing the initiatives driven within our respective business areas.
An eventful quarter
The third quarter was characterized by high intensity. In August, new financial targets were presented. Shortly thereafter, we held our first Capital Markets Day to give the market a clearer insight into our existing operations and our strategy for continued value creation. We have also successfully changed our listing to Nasdaq Stockholm's main list, which marks an important qualitative step in Humble's continued development.
International expansion is on track with several new product launches. A diaper series in a new price segment from Naty has been launched in the US and an international roll-out of Pändy and True Co is currently taking place in several European markets. It is also gratifying that the construction of the beverage line in Habo is now ready for full-scale production. The first production series is planned for the fourth quarter and the intention is to grow the production rate over time towards a full shift. Privab has entered into a strategic cooperation agreement with Hemmakväll, a leading player in Sweden in the confectionery and snack trade with 69 stores. The collaboration will begin at the turn of the year and strengthens our position as an attractive partner for the distribution of snacks, drinks and confectionery. Earlier efforts in Australia are now bearing fruit and we see a positive development from the factory acquisition of a bar producer and the associated launch of Body Science Soft Bars. The reception of our protein bars has been beyond expectations and the product range has quickly become the leader in the bar category in Australia.
Operationally, we continue to see high demand from our customers. The response from the major retailers is positive and we have confirmed several new product and brand launches for 2025. The consolidation work is progressing and we have initiated a number of further structural integrations and consolidations, with the aim of streamlining central functions and gaining scalability in purchasing and sales.
Strong cash generation and increased gross profit
Organic growth increased compared to the first half of the year, with the Quality Nutrition business segment standing out with an increase of 18 percent, driven by strong performance in Sweden and Australia. Organic growth of 7 percent in Future Snacking was not satisfactory, negatively impacted by terminated external distribution agreements in FCB of SEK -7 million and some capacity constraints. The brands in the segment continue to perform strongly and the work to strengthen production capacity continues, where we have a good outlook for the segment as a whole going forward. The sales increase for the Group is primarily volume-driven and we continue to see a slowdown in the historical price increases that dominated the market last year.
Profitability developed in the right direction, with adjusted EBITA amounting to SEK 154 million (139), a total increase corresponding to 11 percent and taking into account the divestment of the properties, the organic increase was 14 percent.
The gross margin for the quarter showed an improvement compared to last year and increased to 31% (29), contributing to a 15% increase in gross profit. The improved margin is a result of our efforts to gradually implement central margin improvement initiatives and good management of the dynamics of pricing towards customers and purchasing. The good demand and margin improvements are gratifying, not least in light of the volatile freight and commodity markets and continued uncertainty in the consumer market.
Kvartalet levererade ett starkt kassaflöde om 142 MSEK efter förändring av rörelsekapital, trots en ökad lagerbindning om -47 MSEK inför oktober och november, vilka historiskt varit de högsta försäljningsmånaderna. Säsongsmässigt förväntar vi oss att kunna frigöra ytterligare rörelsekapital under fjärde kvartalet, vilket kommer ha en positiv effekt på vårt kassaflöde. Vår balansräkning fortsätter att stärkas och vi följer den tidigare kommunicerade planen om att minska skuldsättningen mot vårt finansiella mål på <2.5x.
Outlook
The fourth quarter is Humble's most important quarter in terms of sales. The quarter has had a positive start, while at the same time we are meeting strong comparative figures against the previous year in terms of net sales. We see good opportunities to continue to grow the business with strengthened profitability and at the same time ensure the best possible conditions for 2025, with the focus on continued profitability improvement, development of our platform and establishment in existing and new markets. I am convinced that our position, combined with the strategic initiatives that have been started, gives us all the conditions to continue to create value for our shareholders."
The report is attached and can also be downloaded in full from the company's website here.
For further information, please contact:
Simon Petrén, CEO, Humble Group AB
Tel: +468 61 32 888
Email: simon.petren@humblegroup.se
This information is information that Humble Group AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release was published through the agency of the contact person set out above, at the time stated by Humble Group's news distributor Cision at the time of publication of this press release.
About Humble
Humble Group is a Swedish group of companies that specializes in driving value creation and accelerating growth in small and medium-sized companies in fast moving consumer goods (FMCG). Through an entrepreneurial approach and active ownership, Humble Group focuses on transforming its businesses and developing them towards the consumer needs of the future. The company has a number of brands, a global distribution network and production facilities where the subsidiaries operate independently in their business areas, while Humble Group provides strategic direction and support. The group is headquartered in Stockholm. For more information visit http://www.humblegroup.com
Humble is listed on Nasdaq Stockholm Mid Cap, under the ticker HUMBLE.
Forward-looking statements
This press release contains forward-looking statements that reflect Humble's intentions, beliefs or expectations regarding Humble's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which Humble operates. Forward-looking statements are statements that are not historical facts and can be identified by the use of words such as "believes", "expects", "anticipates", "intends", "estimates", "will", "may", "anticipates", "should", "could" and, in each case, the negatives thereof, or similar expressions. The forward-looking statements in this press release are based on various assumptions, many of which are based on additional assumptions. Although Humble believes that the assumptions reflected in these forward-looking statements are reasonable, there can be no assurance that they will materialize or that they are accurate. Because these assumptions are based on assumptions or estimates and are subject to risks and uncertainties, actual results or outcomes could differ materially from those in the forward-looking statements for a variety of reasons. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by the forward-looking statements. Humble does not guarantee that the assumptions underlying the forward-looking statements contained in this press release are accurate and any reader of the press release should not place undue reliance on the forward-looking statements contained in this press release. The information, opinions and forward-looking statements expressed or implied herein are made only as of the date of this press release and are subject to change. Neither Humble nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, except as required by law or Nasdaq First North Growth Market's Rule Book for Issuers.
