Q3 2024 Elmera Group ASA Earnings Call Transcript
Key Points
- Elmera Group ASA (STU:1ZK) reported strong net revenue growth year-on-year, driven by increased core margins across all electricity retail segments.
- The company successfully reduced operating expenses, contributing to a significant improvement in EBIT adjusted, which increased from NOK50 million in Q3 2023 to NOK79 million in Q3 2024.
- The Nordic segment showed strong customer growth, particularly in the B2C segment, due to enhanced in-house sales capacity.
- The refinancing process was completed, securing credit facilities to support the group's updated sourcing model effective May 1, 2025.
- The Fjordkraft brand has seen improvements in loyalty, reputation, and customer satisfaction, with historically low churn rates.
- A restatement in book equity and an increase in direct cost of sales were necessary due to a failure by a key supplier to invoice correctly, impacting historical figures.
- The new growth initiatives segment experienced a decrease in net revenue and operating profit year-on-year, attributed to strong comparable figures from the previous year.
- The Nordic segment faced a 25% year-on-year volume reduction due to the phase-out of legacy fixed price products.
- Payments to obtain new contracts increased in the third quarter, indicating potential challenges in maintaining cost efficiency.
- M&A activities have been stalled due to pricing issues, despite having financing and scale advantages.
Good morning and welcome to our third quarter presentation.
My name is Rolf Barmen, head of Elmera Group. Today, I have as usual with me, our CFO Henning Nordgulen and also head of investor relations Morten Opdal, who will take questions during our presentation and address them to Henning and myself during our Q&A session.
We are very, very satisfied with the group's performance in this quarter. The net revenue came in strong with a significant growth year-on-year driven by increased core margins from all our electricity retail segments. Accordingly, a bit adjusted was also strong in the quarter, accelerated by year-on-year reduction in our operating expenses. We continue to see good effects from our cost program and the OpEx Development is in line with our financial targets from our capital markets day, so I think that we are on track.
Volume sold and deliveries developed quite steadily. And as for deliveries, I am particularly satisfied with the development in the Nordic segment where we have succeeded in
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