In This Article:
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Revenue: SEK12.4 billion for the full year, with a negative organic growth of 0.5%.
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Adjusted EBITDA: SEK546 million for the full year, with a margin of 4.4%.
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Q4 EBITDA Margin: 3.3%, impacted by operational challenges in Sweden and Denmark.
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Net Income: Negative SEK13 million for Q4; adjusted net income SEK2 million for the full year.
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Cash Conversion: 57% for the full year, below the target of 90%.
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Leverage: LTM number at 3, with a target to reduce below 2.5 during 2025.
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Retention Rate: 88% for 2024, an improvement from the previous three-year average of 67%.
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Dividend Proposal: SEK1.5 per share, including SEK1 as ordinary and SEK0.5 as extra dividend.
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Share Buyback Program: Up to SEK50 million, representing approximately 1.5% of outstanding shares.
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Contract Portfolio Changes: Positive net change of SEK10 million for signed and cancelled contracts in the second half of 2024.
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Organic Growth by Region: Sweden: -1% Q4, 6% full year (excluding Ericsson); Denmark: -3% Q4; Norway: -6% Q4; Finland: -7% Q4.
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Cost Savings Initiative: Reduction of 130 positions, expected savings of SEK120 million annually.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Coor Service Management Holding AB (FRA:COE) successfully renewed several major contracts, including a significant extension with PostNord, demonstrating strong client retention.
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The company reported a high retention rate of 88% for 2024, a substantial improvement from the previous three-year average of 67%.
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Coor has a well-balanced contract portfolio with a mix of large corporations and small to medium-sized enterprises, providing stability and diversification.
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The company is implementing a simplified organizational structure aimed at improving efficiency and reducing costs, expected to save approximately SEK120 million annually.
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Coor's board proposed a dividend of SEK1.5 per share, reflecting a commitment to shareholder returns, with plans for a share buyback program to further enhance shareholder value.
Negative Points
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Coor experienced a negative organic growth of 3% in Q4 2024, attributed to ended contracts and lower variable volumes.
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The company's adjusted EBITDA margin for Q4 was 3.3%, below the previous year and target, impacted by operational challenges in Sweden and Denmark.
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Coor's leverage increased to three times, slightly above their target, due to weak profitability and cash flow performance.
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Operational challenges in Sweden and Denmark, including inefficiencies in workforce planning and excess resource use, negatively impacted profitability.
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The company faced a negative organic growth of 6% in Norway and 7% in Finland, driven by contract terminations and lower variable volumes.