ITAB Shop Concept

Third quarter (1 Jul-30 Sep 2024)

• Net sales increased by 2 percent to MSEK 1,553 (1,529). Currency-adjusted sales rose by 4 percent.
• Operating profit before depreciation and amortisation (EBITDA) excluding non-recurring items of MSEK -21 (0) amounted to MSEK 154 (180). 1)
• Operating profit amounted to MSEK 69 (129) and the operating margin was 4.4 percent (8.5). Operating profit was charged with non-recurring items of MSEK -21 (0). 1)
• Profit after financial items totalled MSEK 73 (113). 1)
• Profit after tax amounted to MSEK 50 (79).
• Earnings per share before and after dilution totalled SEK 0.19 (0.32). 2)
• Cash flow from operating activities amounted to MSEK 160 (229).

Reporting period (1 Jan-30 Sep 2024)

• Net sales increased by 6 percent to MSEK 4,814 (4,538). Currency-adjusted sales rose by 7 percent.
• Operating profit before depreciation and amortisation (EBITDA) excluding non-recurring items of MSEK -21 (0) amounted to MSEK 589 (477). 1)
• Operating profit increased by 31 percent to MSEK 380 (290), correspond­ing to an operating margin of 7.9 percent (6.4). Operating profit was charged with non-recurring items of MSEK -21 (0). 1)
• Profit after financial items totalled MSEK 357 (248). 1)
• Profit after tax amounted to MSEK 250 (173).
• Earnings per share before and after dilution increased by 49 percent to SEK 1.09 (0.73). 2)
• Cash flow from operating activities amounted to MSEK 301 (434).
• The equity/assets ratio at the end of the period was 59 percent (51). 2)
• Net debt excluding lease liabilities amounted to MSEK -392 (306). During the quarter, the Group received MSEK 544 in issue proceeds from a directed share issue (see Note 6 in the interim report).

1) EBITDA, operating profit and profit after financial items for the third quarter as well as for the 2024 reporting period were charged with non-recurring items of MSEK -21. The non-recurring items pertain to acquisition costs in conjunction with the intended acquisition of HMY.
2) Comparative periods including Discontinued Operations.

Events during the reporting period

• ITAB commenced delivery of 7,200 self-checkouts to the stores of a leading grocery chain in multiple countries in Europe during January.
• In January, ITAB signed an agreement with a leading fashion chain in Europe for the delivery of customised interiors, checkouts and fitting rooms for the refurbishment of existing stores and in upcoming new stores over three years.
• In early April, ITAB signed an agreement with a leading grocery chain for the delivery of entrance and exit gates, aimed at improving loss prevention measures in their stores across Europe.
• In May, ITAB made a strategic investment in Signatrix GmbH, a technology and Retail AI startup.
• At the end of August, ITAB signed a framework agreement for the manufacturing, delivery and installation of shopfitting and signage solutions for a major financial services provider throughout the UK.
• In September, ITAB signed a framework agreement with a world-leading manufacturer of window coverings for the roll-out of a new shop-in-shop concept in some 900 stores in their reseller network throughout Europe.
• With the aim of strengthening ITAB’s position and complementing the Group’s current offering, ITAB agreed to acquire Financière HMY for a cash consideration of MEUR 320 at the end of September. HMY is a leading European supplier of shop fittings, checkouts and store design to the retail industry and had sales of just over MEUR 541 in 2023.
     The acquisition is intended to be financed through a combination of new debt (see page 4 in the interim report) and equity (see Note 6 in the report). The transaction is conditional upon signing of a final and definitive share purchase agreement, necessary regulatory approvals as well as other customary closing conditions. Closing is expected to occur at the end of the fourth quarter of 2024 or beginning of the first quarter of 2025.

President’s comments –
Acquisition of HMY creates a strong platform for the future

“The first nine months of the year were characterised by higher sales and stronger earnings for ITAB, with the historically strong start to the year in the first two quarters followed by a weaker third quarter. The project-based nature of our operations entails that customer investments may be adjusted in time, and project postponements resulted in the product mix having a negative impact on the gross margin and earnings during the quarter. We are now focused on continuing our efforts to fill our order book in the quarters ahead, and on underlying long-term earnings improvement. At the same time, we are also creating a stronger platform for the future through the intended acquisition of HMY,” concludes President & CEO Andréas Elgaard.

Please read the full President’s comments in the Interim Report.

Jönköping, 29 October 2024

ITAB Shop Concept AB (publ)

Webcast presentation on 29 October 2024 at 10:30 a.m. CET
ITAB arranges a webcast presentation today, 29 October 2024 at 10:30 a.m. CET, in which Andréas Elgaard, President & CEO, and Ulrika Bergmo Sköld, CFO, will present the Interim Report for the third quarter 2024 and answer any subsequent questions.
To participate via webcast – please use the weblink below. Via the webcast you are able to ask questions in writing.
https://ir.financialhearings.com/itab-shop-concept-q3-report-2024
To participate in the teleconference, please register via the weblink below. After registration you will be provided phone numbers and a conference ID to access the conference call. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=50048726