StrongPoint ASA: Third Quarter Results 2024

“Following several very tough quarters, we are now starting to see some positive effects of organizational, cost and commercial measures taken earlier. Revenue is up 7% driven by strong project driven performance in the Baltics and Sweden as well as from e-commerce. Despite a continued challenging shopfitting market in the UK our Group profit figures are back to black. In addition to a generally slightly more positive business environment, we are having great success with the roll-out of our Order Picking solution at Sainsbury’s in UK,” says Jacob Tveraabak, Chief Executive Officer of StrongPoint.

StrongPoint reported revenues of NOK 313 million (293) in the third quarter of 2024 and an EBITDA of 12.2 million (3.8). The third quarter EBIT was NOK 2.2 million and EBT was NOK 3.8 million. The net profit after tax ended at NOK 2.7 million in the quarter. Cash flow from operating activities was NOK 10.1 million.

“Whilst we will continue our efforts to improve short-term financial performance, we are fully focused on delivering on the important roll-out of our Order Picking solution to Sainsbury’s. With the announcement of such an esteemed grocery retailer as Sainsbury’s, our UK & Irish businesses are experiencing more solution and product interest than ever before. As examples, we now have 3 confirmed proof of concepts (POCs) for our Vensafe loss prevention solution, aimed at reducing the significant theft issues in stores. Also, we have confirmed a POC for Grocery Lockers, aimed at reducing the last mile delivery cost of e-groceries, compared to home delivery which is so prevalent in the UK market. In addition to the positive development on the customer side in the UK, our E-commerce offering is gaining attention worldwide,” Tveraabak continues.

“Whereas we continue to observe much market uncertainty in the short-term I am cautions about promising continued significant short-term financial improvements. That said, as the organizational, cost and commercial measures taken earlier have started bearing fruits this quarter, I am hopeful about positive trends and improved performance for the remainder of the year and into 2025,” Tveraabak concludes.

StrongPoint will host an in-person and streamed presentation of the third quarter results at 07:00 CET followed by a Q&A session at 10:00 CET 18 October 2024. Questions can be submitted online during the Q&A or via email at: investor@strongpoint.com.

The webcast is available at strongpoint.com and can also be accessed by the following links:

Q3 Presentation:  https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20241018_1

Live Audiocast :  https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20241018_2

*EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the first quarter 2024 financial report on page 24.