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Elmera Group ASA (FRA:1ZK) Q4 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Net Revenue (Q4 2024): NOK486 million, up from NOK474 million in Q4 2023.

  • EBIT Adjusted (Q4 2024): NOK154 million, compared to NOK157 million in Q4 2023.

  • Net Revenue (Full Year 2024): NOK1.793 billion, a 3.5% increase from 2023.

  • EBIT Adjusted (Full Year 2024): NOK569 million, an 11% increase from the previous year.

  • Operating Expenses (Q4 2024): NOK332 million, up from NOK317 million in Q4 2023.

  • Total Assets (Year-End 2024): Approximately NOK6 billion, down from NOK8.3 billion at year-end 2023.

  • Book Equity Ratio: 24%, up from 90% a year ago.

  • Dividend Proposal: NOK3.00 per share.

  • Cash Proceeds from Metzum Sale: NOK160 million.

  • Consumer Segment Net Revenue Increase: Close to 8% year on year.

  • Business Segment Deliveries: Just short of 130,000 deliveries milestone.

  • Nordic Segment Volume Reduction: 31% year on year.

  • EBITDA Adjusted (Q4 2024): NOK224 million.

  • CapEx (Q4 2024): NOK16 million.

  • Net Interest Bearing Debt (Q4 2024): NOK802 million.

Release Date: February 13, 2025

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

Positive Points

  • Elmera Group ASA (FRA:1ZK) successfully mitigated the volume decrease due to mild weather through effective product management efforts.

  • The company increased core margins in both the consumer and business segments, contributing to financial robustness.

  • Net revenue increased year over year in all segments, and the company delivered on all financial targets for 2024.

  • The proposed dividend of NOK3.00 per share represents an attractive payout to shareholders, supported by a gain from the sale of a 40% ownership in Metzum.

  • The Business segment achieved a milestone of nearly 130,000 deliveries, showcasing a robust product range and strong track record.

Negative Points

  • Mild weather led to a 9% reduction in volume sold year over year, impacting net revenue by NOK10 million to NOK15 million in the Consumer and Business segments.

  • Increased competition during the seasonal trend from Black Week through Christmas temporarily impacted customer acquisition in the Consumer segment.

  • Operating expenses increased in the fourth quarter, with OpEx temporarily hiked in the Nordic segment due to increased loss provisions and amortization.

  • The company lost approximately 10,000 customers in the Consumer segment in 2024, partly due to changes in product offerings and increased competition.

  • The Nordic segment experienced a 31% year-on-year volume reduction due to the phase-out of legacy fixed price products and mild weather.