Q3 2024 Akva Group ASA Earnings Call Transcript
Key Points
- AKVA Group ASA (FRA:3QI) reported a record high revenue for Q3 of NOK936 million, marking a significant increase from the previous year.
- The company achieved a solid EBIT of NOK78 million, representing its strongest Q3 performance ever.
- The acquisition of 100% ownership of Observe Technologies was completed, enhancing AKVA Group ASA's digital capabilities.
- The company has a strong order backlog of approximately NOK2.4 billion, indicating a healthy pipeline of future business.
- AKVA Group ASA expects a strong order intake in Q4, supported by a new RAS contract with Cermaq valued at EUR30 million.
- The company faces high net financial costs, with NOK52 million in the quarter, partly due to reduced market value on investments.
- Despite improvements, the digital segment's profitability remains on the soft side, with current costs too high relative to revenue.
- The company decided not to pay any dividends for the second half of 2024, indicating potential cash flow management issues.
- There is a relatively slow momentum in the post-smolt market in Norway, which could impact future growth in this segment.
- The company has not been as successful with its go-to-market model for digital solutions, necessitating changes and new hires.
Ladies and gentlemen, good morning and very much, welcome to this third quarter presentation of ACFA group. The agenda for this morning is that I will do the introduction and the highlights. Ronnie Minan, our CFO will do the financial performance and we will also have a Q&A session at the end. So please post any questions during the presentation and our moderator will read them during the Q&A.
Let's go straight to the highlights for Q3. It was a high activity with revenue of NOK936 million for the quarter and an intake of NOK803 million.
It came with a solid financial performance of EBIT of NOK78 million and also please notify that not for the quarter but into fourth quarter, we also know that we were awarded the LOI from Cermaq related to a RAS contract for a new post small facility in Chile with estimated contract value of EUR30 million for approx NOK350 million.
Also, we completed the acquisition of the 100% ownership of observed technologies that was also completed in Q3 and we continue to focus to further
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