Q3 2024 Karnov Group AB (publ) Earnings Call Transcript
Key Points
- Karnov Group AB (LTS:0A39) reported a strong margin improvement of more than 3% points in the third quarter, driven by synergies from their initiatives.
- The company successfully launched AI-supported legal information solutions across all markets, enhancing customer value and efficiency.
- Net sales grew to SEK 648 million in the quarter, with organic growth driven by the North region.
- The technical carveout in Spain was completed, removing technical risks and allowing focus on profitable growth with a new country manager.
- The company has harvested synergies on an annual run rate basis of EUR 9 million, with a target of EUR 20 million by the end of 2026.
- Leverage increased to 3.1 times EBITA due to negative currency effects and seasonal cash flow impacts.
- Region South experienced a decline in online sales by 3% compared to the previous year, mainly due to negative currency effects.
- The integration process in Spain has slightly affected sales work, although it is now moving into the next phase.
- Adjusted free cash flow was negative SEK 32 million in the third quarter, although it showed improvement compared to the previous year.
- There are concerns about maintaining performance in Region North as Alexandra Oquist takes on additional responsibilities in Region South.
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Welcome everyone to Kano Group's earnings conference where we will present the outcome of the third quarter of 2024. Please go to slide 2.
I'm Pontus Bodelsson , President and CEO of the company with me. I have our CFO Magnus Hansson and our head of investor relations. Erik Berggren and I will present the outcome of the quarter using a few slides and then we'll open up for questions with that said, let's get started with the presentation of the third quarter. Please go to slide 3.
We deliver strong margin improvement in the quarter as synergies are coming through. According to plan, the improvement is a little more than 3% points in the third quarter.
We have expanded our mission critical legal information solutions for our customers, launching A I supported services on all markets and our new flagship products in France.
We have also completed the technical carveout in Spain and the technical risk in the integration is now removed. Now, we are
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