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• Net Sales Decrease: Total decrease of roughly 1.6%, with an organic decline of approximately 50.6%.

• Adjusted EBITA Margin: 6.4%, down from 9.1% last year.

• Net Debt to Adjusted EBITDA Pro Forma: Approximately 3.3 times.

• Order Backlog: Historical all-time high, with an organic drop of roughly 8%.

• Operating Cash Flow: Decrease due to lower earnings, with a cash conversion rate of 118% for the full year and 220% in Q4.

• Average Interest Rate: Around 6.1% for 2024.

• Clear Line Acquisition: Contributed SEK126 million in net sales and SEK57 million in EBITA over two months.

• Liab Pltbyggarna Acquisition: Revenues of approximately SEK80 million in 2024.

• Dividend Policy: No dividend proposed for 2024; dividend policy removed.

• Warning! GuruFocus has detected 4 Warning Signs with FRA:83A.

Release Date: February 11, 2025

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

Positive Points

• Fasadgruppen Group AB (FRA:83A) reported stable development in Denmark, Norway, and Finland, indicating strong performance in these regions.

• The integration of Clear Line has been successful, positively impacting results and increasing the order backlog.

• The company has implemented a new organizational structure to improve efficiency and governance, aiming to enhance performance.

• Fasadgruppen Group AB (FRA:83A) has converted its credit facilities into a sustainability-linked loan, aligning with environmental goals.

• The acquisition of Clear Line and Liab Pltbyggarna provides strategic growth opportunities and strengthens the company's market position.

Negative Points

• The Swedish operations experienced an unusually weak fourth quarter, significantly impacting overall performance.

• Net sales decreased by 1.6%, with a sharp organic decline of 50.6% in Sweden due to low demand and seasonal effects.

• The adjusted EBITA margin declined to 6.4% from 9.1% the previous year, primarily due to challenges in the Swedish market.

• The company's net debt to adjusted EBITDA pro forma increased to 3.3 times, prompting a focus on reducing leverage.

• The board proposed no dividend for 2024 and removed the dividend policy, reflecting financial challenges and a focus on debt reduction.

Q & A Highlights

Q: Can you elaborate on the organizational changes in Sweden and why they are being implemented now? A: Martin Jacobsson, CEO, explained that the weak Q4 results prompted the need for closer proximity to subsidiaries. The new structure aims to enhance efficiency by getting closer to operations, especially given the challenging market conditions in Sweden.