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Catella AB (STU:SKWB) Q4 2024 Earnings Call Highlights: Robust Revenue Growth and Strategic ...

In This Article:

  • Assets Under Management (AUM): SEK155 billion.

  • Revenue: SEK2.3 billion.

  • Net Revenue Increase: 39% year on year.

  • EBIT Increase: Almost 7 times, considering SEK19 million restructuring cost.

  • Transaction Volume Growth: Over 20% year on year in Q4.

  • Residential Segment Growth: 45% year on year.

  • Fixed Revenue Contribution: Nearly 70% of income.

  • Restructuring Costs: SEK19 million in Q4; SEK44 million for the full year.

  • Fixed Cost Reduction: SEK33 million in Q4; SEK76 million for the full year.

  • Net Financial Improvement: SEK71 million better than last year, driven by FX tailwinds.

  • Cash Position: SEK901 million at the end of the quarter.

  • Equity Ratio: 37%.

  • Principal Investments: 9 active projects at year-end.

  • Investment Returns Target: 15% to 20% IRR.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Catella AB (STU:SKWB) reported a 39% year-on-year increase in net revenue, reflecting improved market conditions and efficiency initiatives.

  • The company experienced a significant increase in transaction volumes, particularly in the residential segment, which grew by 45% year-on-year.

  • Catella AB (STU:SKWB) achieved a milestone of EUR500 million in capital commitments into its logistics fund in Germany, highlighting strong performance in this asset class.

  • The company successfully merged its two German fund platforms, creating Catella Investment Management with EUR10 billion in assets under management.

  • Catella AB (STU:SKWB) has reduced fixed costs by over SEK200 million since 2022, demonstrating effective cost management.

Negative Points

  • The market activity in smaller regions, such as Finland, remains limited, affecting transaction volumes.

  • Despite positive developments, the company still faces challenges with muted capital inflows to core property funds.

  • Negative revaluations of assets under management have persisted for several quarters, although they are expected to bottom out soon.

  • The company incurred SEK19 million in restructuring costs during the quarter, impacting overall profitability.

  • There is uncertainty regarding the timing and outcome of the Kaktus project divestment, which is a significant transaction for the company.

Q & A Highlights

Q: How should we think about the corporate finance results in the coming quarters given the strong performance in Q4 2024? A: Daniel Gorosch, Interim CEO, explained that market activity has improved, with transaction volumes increasing month by month and year over year. He noted that the Swedish market saw a 100% increase in transaction volumes in December and January compared to the previous year, indicating a positive trend fueled by better financing conditions.