Why did ABP's operating expenses surge in Q3 2024 despite revenue challenges?

ABP Nocivelli's operating expenses increased to €47.7 million in Q3 2024, up from €40.1 million in the same period of 2023. This rise in operating expenses can be attributed to several factors: 1. **Increased Research and Development Costs**: ABP Nocivelli has been investing more in research and development, with expenses reaching €14.3 million in Q3 2024, up from €20.2 million in the previous year. This indicates a strategic shift towards innovation and potentially the development of new products or services. 2. **Higher Administrative Costs**: The company's general and administrative expenses also increased, rising to €5.5 million in Q3 2024 from €2.1 million in the same quarter of 2023. This could be due to expansion and the need to manage a growing business, including increased salaries, benefits, and other administrative burdens. 3. **Ongoing Investment in Technology and Infrastructure**: ABP Nocivelli has been awarded several tenders and contracts, including those for plant engineering works and railway construction, totaling approximately €20 million. These investments are crucial for long-term growth but require immediate funding, thus increasing short-term operating expenses. Despite these increases, ABP Nocivelli has maintained a stable net financial position with a cash-positive outlook, indicating effective financial management. The company's focus on long-term contracts and strategic investments is likely to yield substantial returns, supporting its positive profitability trend.