STOCKHOLM – Note announced third-quarter sales of SEK809 million ($77.6 million), down 20% from 2023's third quarter.

For the first nine months of the year, the company's sales totaled SEK 2.9 billion ($278.2 million).

"Third-quarter sales did not progress as we anticipated and were significantly below our expectations," said president and CEO Johannes Lind-Widestam. "Sales in Q3 were SEK 809 million, equivalent to negative organic growth of 20%. We’re far from satisfied with this, and we know we have a stronger customer portfolio than it suggests.

"We think achieving underlying profitability of 8.3% in the quarter is a sign of strength. Growth generates profitability, and when the growth our customers have been signalling and placed orders for is deferred, this obviously has an impact. Even if our ambitions for operating margin are higher, we’re proud that by continuously adapting our business, we succeeding in keeping our margin over 8% despite us not getting the volumes we planned for. We’re working continuously on rationalising, and still see potential here.

"It’s gratifying that our operating cash flow was SEK 157 million in the third quarter, which is also in line with plan. The corresponding number for the first three quarters of the year was SEK 398 million. We expect our strong cash flows to continue going forward. NOTE’s financial situation remains really positive with an equity to assets ratio of 49% and net debt of SEK 203 million (adjusted for leased properties under IFRS 16).

"We see a brisk finish to the year and reiterating our guidance of sales for the fourth quarter of SEK 975–1,025 million and a minimum operating margin of 9.5%."