Better Collective adjusts 2024 financial guidance
Following an assessment of preliminary Q3 performance, including the first six weeks of high season in the US market, Better Collective is providing a trading update and adjusting its financial guidance. After recent large acquisitions and the market outlook, the Group is implementing a streamlining process to optimize the organization accordingly.
Regulatory release 53/2024
Preliminary unaudited numbers for Q3 2024:
- Revenue of 81 mEUR
- EBITDA before special items of 22 mEUR
Full year 2024 financial guidance is changed as follows:
- Revenue of 355-375 mEUR (previously 395-425 mEUR)
- EBITDA before special items of 100-110 mEUR (previously 130-140 mEUR)
- Net debt to EBITDA below 3 (unchanged)
The financial downgrade primarily stems from a lower activity than expected from US partners. Furthermore Better Collective has, as seen in previous quarters, experienced a continued slowdown in activity in the Brazilian market heading into the expected regulation beginning of 2025. Better Collective remains confident in the long-term growth potential of these markets.
Adjusting and streamlining the Group
Following recent major acquisitions and the market outlook, Management has decided to streamline the Group's operations to identify and leverage synergies. These efforts are projected to generate over 50 mEUR in annualized operational cost savings. The initiatives are set to be implemented in the coming month and are expected to have full effect in 2025.
Better Collective will provide further details on these measures in its upcoming Q3 report.
Jesper Søgaard, CEO and Co-Founder of Better Collective states:
“Since 2017, Better Collective has grown significantly both organically and through 35 acquisitions expanding our team while adding increased complexity to our organization. As external market conditions shift, it's important for us to recalibrate our spending and investment strategies to ensure sustainable long-term success. We are currently implementing adjustments that will better prepare us for the future and I am confident that Better Collective will emerge even stronger following this exercise. We operate in a market with strong underlying growth, despite being subject to volatility, and we are well-equipped to adapt and are strategically positioned to sustain our growth in the future.”.