Following its recent performance review, Better Collective has updated its financial guidance for 2024, reflecting market challenges and strategic adjustments. Preliminary Q3 results show a revenue decrease due to lower-than-expected activity in key markets. The group is also planning a series of streamlining initiatives to optimize operations and boost cost efficiency.
- Better Collective’s preliminary Q3 2024 revenue was 81 million euros, with EBITDA before special items of 22 million euros. These results reflect lower-than-expected activity, primarily from US market partners. This trend underscores the company’s need to adjust its strategies for sustainable growth.
- Full-year 2024 revenue guidance has been revised to 355-375 million euros, down from a previous range of 395-425 million euros. Additionally, EBITDA is expected to be 100-110 million euros instead of the earlier 130-140 million euros. Despite these changes, net debt to EBITDA remains unchanged, indicating a balanced financial approach.
- Market challenges in the US and Brazil have significantly impacted growth projections for Better Collective. The US market experienced lower activity than anticipated, while Brazilian market activity continued to decline as the region approaches new regulations in early 2025. Despite these setbacks, Better Collective remains optimistic about the long-term potential in these markets.
- Better Collective has embarked on a streamlining initiative following recent major acquisitions to enhance organizational efficiency. Management aims to leverage synergies across operations to drive cost savings and improve agility. These changes are expected to yield over 50 million euros in annualized operational cost savings.
- The group’s streamlining actions will be implemented within the next month, with expected full effect by 2025. This strategic approach is intended to align the company’s cost structure with current market dynamics and position it for future growth. Further details on these measures will be provided in the upcoming Q3 report.
- Jesper Søgaard, CEO and Co-Founder of Better Collective, expressed confidence in the company’s resilience and growth potential. Since 2017, Better Collective has expanded through 35 acquisitions, which has added complexity to its operations. Søgaard emphasized that recalibrating the company’s spending and investment strategy is vital to maintaining sustainable, long-term growth.
- Despite market volatility, Søgaard believes Better Collective is strategically positioned to sustain growth and adapt to changing conditions. The company’s long-term strategy relies on strong market fundamentals and the ability to respond flexibly to external shifts. This resilience is expected to bolster its success in an evolving market landscape.