In This Article:
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Net Sales: SEK3.1 billion, down from SEK5 billion a year ago.
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Gross Margin: Increased to 14.7% from 13.5% last year.
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EBIT Margin: Remained stable at 9.2%.
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Cash Flow: Positive operating cash flow of SEK1.5 billion for the quarter and full year.
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Net Debt: Reduced to SEK3.1 billion from SEK5 billion.
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Recognized Units: 801 units in Q4 2024, with 552 from B2C and 249 from B2B.
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Inventory Reduction: Reduced inventory by 364 units, resulting in a positive cash flow effect of SEK700 million.
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Germany EBIT Margin: 10.4% in the quarter.
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Finland EBIT Margin: 13% in the quarter, supported by a project in Helsinki.
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Baltics Sold Units: Increased by 114% in the quarter.
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Available Liquidity: SEK2.1 billion.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bonava AB (FRA:66B) reported a 35% year-over-year increase in reservations and sold units, indicating strong demand.
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The company's gross margin improved to 14.7% from 13.5% the previous year, reflecting better profitability.
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Operational costs were reduced, achieving a run rate of SEK1.1 billion, surpassing the target of SEK1 billion.
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Net debt was significantly reduced to SEK3.1 billion from SEK5 billion, strengthening the balance sheet.
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The B2B market is showing signs of recovery, contributing positively to the company's pipeline for 2025.
Negative Points
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Net sales decreased to SEK3.1 billion from SEK5 billion a year ago, due to lower completion numbers.
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The Swedish and Finnish markets are lagging behind in the business cycle, affecting overall performance.
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Some projects in Germany were delayed into 2025, impacting the forecasted completions.
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The Finnish market remains challenging, with oversupply issues affecting new production starts.
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Financial expenses remain high, impacting profitability, with a focus needed on reducing financing costs.
Q & A Highlights
Q: What is your take on the potential impact of global market fluctuations on Bonava's business? A: Peter Wallin, CEO: Short-term implications from tariffs and tolls between the US and China have no direct impact on us as we don't import from the US. However, stability is crucial for long-term business, as volatility can affect consumer confidence and the housing market. Our efforts to reduce net debt and costs will help us navigate any potential impacts.
Q: Can you comment on the average selling price in your consumer business in Sweden and Germany? A: Peter Wallin, CEO: The average selling price varies based on project location and market conditions. While prices in Sweden are around SEK4 million and SEK5 million in Germany, margins are more important than prices. We are seeing improved margins in ongoing projects, despite challenging market conditions.