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Indutrade AB (FRA:I1M) Q4 2024 Earnings Call Highlights: Strong Cash Flow and Strategic ...

In This Article:

  • Revenue Growth: Total sales increased by 7% in Q4 and 2% for the full year.

  • EBITA Margin: Stable at 14.6% for Q4; underlying margin excluding one-offs was 14.3%.

  • Cash Flow: Record-high operational cash flow of SEK1.6 billion in Q4.

  • Acquisitions: 16 companies acquired in 2024 with an annual turnover of SEK1.6 billion; four acquisitions completed in Q4.

  • Dividend Proposal: SEK3.00 per share, up from SEK2.85 last year.

  • Gross Margin: Improved to 35.7% in Q4; 35% for the full year compared to 34.6% last year.

  • Net Debt to EBITDA Ratio: Stable at 1.4 at the end of the year.

  • Earnings Per Share: Increased by 3% in Q4 to SEK2.01; down 4% for the full year to SEK7.86.

  • Order Intake: Organic order intake decreased by 5% in Q4.

  • Geographic Sales Performance: Strong sales growth in Denmark and Norway; weaker in Finland.

Release Date: January 30, 2025

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

Positive Points

  • Indutrade AB (FRA:I1M) reported a successful 2024 with solid financial performance, achieving a 2% growth in orders and net sales.

  • The company maintained a strong EBITA margin of 14.6%, with acquisitions contributing positively to the margin.

  • Indutrade AB completed 16 acquisitions in 2024, with a total annual turnover of SEK1.6 billion, enhancing its strategic platform.

  • The company achieved a record-high operational cash flow of SEK1.6 billion in Q4, indicating strong financial health.

  • Indutrade AB's climate targets were validated by the Science Based Target initiative, showcasing its commitment to sustainability.

Negative Points

  • Organic order intake decreased by 5% in Q4, primarily due to a large order in the previous year, affecting comparisons.

  • The Infrastructure & Construction segment continued to face a generally weaker demand environment.

  • The EBITA margin for the full year decreased to 14.4% from 15% last year, partly due to higher expenses linked to inflation and growth initiatives.

  • The company experienced a decline in earnings per share by 4% on a full-year basis.

  • The Industrial & Engineering segment faced challenges with organic sales decline and higher costs, impacting profitability.

Q & A Highlights

Q: Can you elaborate on the underlying demand in the Life Science segment, particularly regarding single-use products and potential future orders from Novo Nordisk? A: The Life Science area remains promising, with organic order intake well above 5% when excluding a large one-time order. Single-use products are seeing normalized inventory levels and increased order intake, which began in Q4. We anticipate continued strong business opportunities with Novo Nordisk, not just for 2025 but beyond.