In This Article:
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Revenue: Expected to be between EUR2.8 billion and EUR3.2 billion for 2025.
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Operative EBITDA: Expected between EUR540 million and EUR640 million for 2025.
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Volume Growth: 4% for the full year 2024, with 5% growth in Q4.
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Organic Revenue Growth: 3% for the full year 2024 in the water segment.
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EBITDA Margin: 20% reported for 2024; 22.2% for the water segment.
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Net Debt: Below EUR300 million, with leverage at 0.5x.
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Dividend Proposal: EUR0.74 per share, an increase of EUR0.06 from the previous year.
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Capital Expenditures: EUR167 million for 2024, expected to exceed EUR200 million in 2025.
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Cash Flow: EUR165 million in Q4 2024.
Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kemira Oyj (KOYJF) reported its second-best year ever in 2024, with strong margin performance and increased volumes in both segments.
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The company made significant progress in its strategic growth initiatives, including several smaller investments and a bolt-on acquisition.
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Kemira Oyj (KOYJF) introduced new long-term financial targets and a new leadership team, indicating a commitment to profitable growth.
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The company's sustainability efforts were validated by the SBTI, with emission reduction targets for Scope 1, 2, and 3 on track.
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Kemira Oyj (KOYJF) maintained a high customer satisfaction score, achieving an all-time high net promoter score of 59.
Negative Points
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The pulp and paper market remained soft in 2024, with expected recovery delayed to the latter half of 2025.
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Despite overall growth, organic growth was modestly negative due to a 5% decline in prices, excluding certain segments.
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Fixed costs included higher miscellaneous and maintenance costs, impacting the Industry & Water segment.
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The company faces ongoing fixed cost pressures, particularly from salary inflation, despite a stabilizing economic environment.
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Kemira Oyj (KOYJF) anticipates modest cost inflation in 2025, which may require price adjustments to maintain profitability.
Q & A Highlights
Q: To what extent do your pulp and paper prices benefit from electricity prices? And do you expect recovering end markets in pulp and paper to also support higher price contribution in 2025? A: We expect the markets to recover, especially towards the latter half of the year, which should support pricing. Currently, electricity prices are not expected to have a drastic impact on our 2025 performance. However, any permanent changes in electricity prices could affect our bleaching chemistry business.