Weak market in Europe lowers sales and earnings for NCAB in Q3

NCAB expects net sales of between SEK 880 and 900 million for the third quarter of 2024. This is approximately 10 percent lower than the corresponding quarter in 2023. The EBITA result is estimated to amount to between SEK 110 and 120 million, which is approximately 20 percent lower than the corresponding result for the previous year and implies an EBITA margin of around 13%.

"During the third quarter, we have seen that the European economy has softened further and that a recovery in the market has been postponed. The German economy, which is the largest in Europe, has continued to weaken in recent months and we are also seeing spillover effects to other parts of Europe. Among industrial sectors we can note that the expansion of EV chargers has stalled, as well as other industries directly or indirectly linked to the automotive industry.

This means that we will see a negative impact on our net sales in Q3 and Q4 as well as on the EBITA result. Even if it means that the turnaround in the market is some time away, it does not affect our general view of our growth opportunities in the medium and long term, which remain bright," says Peter Kruk, President and CEO of NCAB Group.

The full Q3 report is to be published as scheduled on 5th of November.