In This Article:
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Net Sales: SEK 442 million, representing a year-on-year growth of 11%.
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EBITDA: SEK 89 million, with a margin of 20% for Q4 2024.
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Organic Growth: Negative 3% for the quarter, compared to minus 25% in the previous quarter.
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Cash Flow from Operations: SEK 64 million, affected by growth-related CapEx investments.
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Cash on Hand: Approximately SEK 356 million.
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Healthcare Sales: SEK 275 million, with an organic drop of 1% and a 14% EBITDA margin.
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Lab Segment Sales: SEK 167 million, with an organic sales decline of 10% and a 30% EBITDA margin.
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Full Year EBITDA: SEK 379 million, with a margin of 23%.
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Return on Capital Employed: 12% for the full year 2024.
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Net Leverage: 3.8 times EBITDA at the end of 2024, with plans to reduce to 2.6 times post-rights issue.
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Rights Issue: SEK 457 million planned, with SEK 326 million committed by existing shareholders.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ADDvise Group AB (FRA:Q3I) reported a solid Q4 2024 with net sales of SEK 442 million, marking an 11% year-on-year growth.
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The company achieved an EBITDA of SEK 89 million, resulting in a 20% EBITDA margin for the quarter.
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Organic growth for the year 2024, excluding pharma and clinical trials, was 7%.
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The company has a strong liquidity position with approximately SEK 356 million in cash and short-term investments.
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ADDvise Group AB (FRA:Q3I) is focusing on profitable growth and aims to double its EBITDA every five years.
Negative Points
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The company experienced a negative organic growth of minus 3% in Q4 2024, although this was an improvement from the previous quarter's minus 25%.
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EBITDA decreased by SEK 26 million compared to the previous year, primarily due to normalized earnouts revaluation.
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The healthcare segment reported an organic sales drop of 1% and a lower EBITDA margin of 14% for the quarter.
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Net leverage at the end of 2024 was 3.8 times EBITDA, above the long-term target of three times.
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The company is facing challenges in the pharma and clinical trials segments, which have impacted profitability compared to 2023.
Q & A Highlights
Q: You mentioned reaching more normalized levels for pharma and clinical trials. Do you expect to grow these businesses in 2025? A: We aim to grow our businesses, including pharma and clinical trials, while also defending margins and growing EBITDA. We will not cut good costs to reach targets. (Staffan Torstensson, CEO)
Q: Given the healthy margins in pharma, wouldn't growing this business help reach your new financial targets? A: Yes, there is potential for upside in healthcare margins, which we expect to be higher than in Q4. (Staffan Torstensson, CEO)