Nibe, a leading manufacturer of sustainable energy solutions, recently reported a decrease in revenue of 13.4% to 9.967 million SEK in the third quarter of 2024. This figure fell below the Factset analyst consensus of 10.185 million SEK, reflecting the challenging economic environment the company is operating in.
Over a nine-month period, Nibe experienced a 15.7% decline in sales, with organic sales dropping by 20.0%. The operating profit for the quarter was 912 million SEK, compared to 1.779 million SEK in the same period last year. The operating margin also decreased to 9.2%, from 15.5% in Q3 2023. The pre-tax profit and net profit for the quarter were 626 million SEK and 433 million SEK, respectively.
In response to these results, Nibe’s CEO, Gerteric Lindquist, highlighted the positive impact of inventory reductions in the distribution chain and the downward trend in interest rates. Lindquist expressed optimism about the company’s prospects for the second half of the year, expecting a gradual improvement in demand across all business areas.
Nibe has been implementing a cost-saving program since spring, which is nearing completion and expected to deliver full results by 2025. The company has also noted discrepancies in inventory levels in the German market compared to other regions, with Lindquist foreseeing a gradual alignment in the coming quarters.
Looking ahead, Nibe anticipates a slight improvement in demand in the second half of the year, driven by more normalized inventory levels and the positive effects of interest rate cuts on consumer spending. This outlook represents a shift from the previous expectation of a gradual normalization of inventory levels in the distribution chain.
The financial performance of Nibe in Q3 2024 is summarized in the table below, comparing key metrics with analyst consensus and the previous year’s results:
| Nibe, Mkr | Q3-2024 | Konsensus | Förändring mot konsensus | Q3-2023 | Förändring |
|——————-|———|———–|————————–|———|————|
| Nettoomsättning | 9 967 | 10 185 | -2.1% | 11 514 | -13.4% |
| Rörelseresultat | 912 | 816 | 11.8% | 1 779 | -48.7% |
| Rörelsemarginal | 9.2% | 8.0% | | 15.5% | |
| Resultat före skatt| 626 | | | 1 598 | -60.8% |
| Nettoresultat | 433 | | | 1 220 | -64.5% |
Nibe’s performance in the third quarter reflects the broader challenges faced by companies in the current economic climate. However, with strategic cost-saving initiatives in place and a positive outlook for the future, the company is well-positioned to navigate these uncertainties and drive sustainable growth in the long term.