Qt Group Oyj

Earnings Release • Oct 31, 2024

Qt Group Plc Interim statement January-September 2024

Qt Group Plc Interim statement January-September 2024

Qt Group Plc, Stock exchange release, October 31, 2024, at 8:00AM EET

This release is a summary of Qt Group Plc's Interim Statement for January
-September 2024. The complete report is attached to this release as a PDF file,
and it is also available on the company's website at www.qt.io/investors.

Third quarter 2024: Net sales growth weaker than estimated. Specification to the
full-year net sales guidance.

July-September 2024

· Net sales increased 10.9% percent to EUR 42.2 million (EUR 38.0 million).
The effect of exchange rates on the comparison period's net sales was EUR -0.5
million and at comparable exchange rates, net sales increased by 12.5 percent.
· Operating profit (EBITA) was EUR 10.3 million (EUR 9.2 million) or 24.5
percent (24.1%) of net sales.
· Operating profit (EBIT) was EUR 8.3 million (EUR 7.2 million) or 19.7
percent (18.8 %) of net sales.
· Earnings per share were EUR 0.30 (EUR 0.22).

January -September 2024

· Net sales increased 15.7 percent to EUR 140.6 million (EUR 121.5 million).
The effect of exchange rates on the comparison period's net sales was EUR -0.8
million and at comparable exchange rates, net sales increased by 16.5 percent.
· Operating profit (EBITA) was EUR 39.8 million (EUR 29.4 million) or 28.3
percent (24.2%) of net sales.
· Operating profit (EBIT) was EUR 33.8 million (EUR 23.4 million) or 24.0
percent (19.3 %) of net sales.
· Earnings per share were EUR 1.13 (EUR 0.70).

The figures in brackets refer to the comparison period, i.e., the corresponding
period in the previous year. The percentage of change in net sales at comparable
exchange rates is calculated by translating the net sales from the comparison
period 2023 with the actual exchange rates of the reporting period 2024 and by
comparing the reported net sales in 2024 with the calculated 2023 net sales at
comparable exchange rates.

Key figures

[][][][]
EUR 1,000 7-9/2024 7-9/2023 Change, 1-9/2024 1-9/2023 Change, 1-12/202
% % 3

Net sales 42,176 38,039 10.9% 140,583 121,479 15.7 % 180,743
Operating 10,330  9,158 12.8% 39,816 29,450 35.2 % 55,379
profit
(EBITA)
EBITA, % 24.5% 24.1% 28.3% 24.2 % 30.6 %
Operating 8,323  7,150 16.4% 33,794 23,427 44.2 % 47,349
profit
(EBIT)
EBIT, % 19.7% 18.8% 24.0% 19.3 % 26.2 %
Return on 5.6% 5.7% 21.0% 18.6 % 33.9 %
equity, %
Return on 6.9% 6.1% 24.5% 19.3 % 35.6 %
investment,
%
Interest  4,168  20,923 -80.1% 4,168  20,923 -80.1 % 20,513
-bearing
liabilities
[1]
Cash and  44,925  31,289 43.6% 44,925  31,289 43.6 % 33,595
cash
equivalents
[1]
Net -27.1% -9.9% -27.1% -9.9 % -10.7 %
gearing, %
[1]
Equity 78.2% 60.0% 78.2% 60.0 % 64.4 %
ratio, %
[1]
Earnings 0.30 0.22 40.1% 1.13  0.70 61.3 % 1.40
per
share
(EPS), EUR
Diluted 0.30 0.22 40.0% 1.13  0.70 61.2 % 1.39
earnings
per share,
EUR
Personnel, 848 740 14.5% 824  719 14.7 % 732
on
average

[1] At the end of the period

Juha Varelius, President and CEO

The third quarter of 2024 was weaker than expected for the company. Net sales
growth for the quarter, at comparable exchange rates, was 12.5 percent. Net
sales amounted to EUR 42 million.  The moderate growth of net sales was mainly
due to the weaker-than-estimated sales of distribution licenses, as well as
challenges in the American business. License sales have otherwise continued
their steady growth. In terms of geographic regions, Europe and Asia developed
according to plan.

Operating profit (EBITA) for the third quarter came to EUR 10.3 million,
representing 24.5 percent of net sales. The year-on-year increase was 12.8
percent. During the review period of January-September, our number of personnel
increased by 15 percent year-on-year. We had 858 employees at the end of
September.

In spite of the challenges in the third quarter, our view is that we are in a
stable position to significantly increase net sales growth in the fourth
quarter.

We specify our previously published guidance for 2024 regarding net sales
growth.

Outlook for 2024

We have specified our guidance for 2024 to indicate that the full-year 2024
revenue will grow by 20-25 percent at comparable exchange rates year-on-year.
Our guidance for the operating profit margin (EBITA %) remains unchanged.

We specify our previously published guidance for 2024 as follows:

Previous guidance:

We estimate that our full-year net sales for 2024 will increase by 20-30 percent
year-on-year at comparable exchange rates and that our operating profit margin
(EBITA %) will be 25-35 percent in 2024.

Specified guidance:

We estimate that our full-year net sales for 2024 will increase by 20-25 percent
year-on-year at comparable exchange rates and that our operating profit margin
(EBITA %) will be 25-35 percent in 2024.

News conference

Qt Group will hold an English-language news conference on October 31, 2024, at
11:00-12:00 EET at Itämerentorni in Helsinki, Finland, and as a webcast at
www.qt.io/investors. CEO Juha Varelius and CFO Jouni Lintunen will present the
results at the news conference. Analysts and investors can participate in the
news conference in person or via conference call:
http://palvelu.flik.fi/teleconference/?id=10012333.

Further information:
President and CEO Juha Varelius, tel. +358 9 8861 8040

Distribution:
Nasdaq Helsinki
Key media
www.qt.io

Attachments: