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Melexis NV (XBRU:MELE) Full Year 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Full Year 2024 Sales: EUR932.8 million, a decrease of 3% compared to the previous year.

  • Gross Result: EUR401.4 million or 43% of sales, a decrease of 9% compared to last year.

  • R&D Expenses: 11.8% of sales.

  • G&A Expenses: 5.5% of sales.

  • Selling Expenses: 2.1% of sales.

  • Operating Result: EUR219.9 million or 23.6% of sales, a decrease of 16% compared to 2023.

  • Net Result: EUR171.4 million or EUR4.25 per share, a decrease of 18% compared to 2023.

  • Q4 2024 Sales: EUR197.4 million, a decrease of 21% compared to the same quarter of the previous year.

  • Q4 2024 Gross Result: EUR77.6 million or 39.3% of sales, a decrease of 31% compared to the same quarter of last year.

  • Q4 2024 Operating Result: EUR27.6 million or 14% of sales, a decrease of 55% compared to the same quarter of last year.

  • Q4 2024 Net Result: EUR18.3 million or EUR0.45 per share, a decrease of 63% compared to the fourth quarter of 2023.

  • Dividend Proposal: Total dividend of EUR3.7 gross per share for 2024.

  • 2025 Q1 Sales Outlook: Expected to be in the range of EUR190 million to EUR200 million.

  • 2025 H1 Sales Outlook: Expected to be around EUR400 million with a gross profit margin around 40% and an operating margin around 16%.

  • 2025 CapEx Expectation: Around EUR50 million.

Release Date: February 05, 2025

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

Positive Points

  • Melexis NV (XBRU:MELE) achieved a record number of product launches in 2024, setting a strong foundation for future sales growth.

  • The company continues to capture a strong level of design wins in both automotive and non-automotive applications, indicating robust innovation and market penetration.

  • Geographically, Melexis NV has shown strong design win performance in China, confirming strategic positioning in this key market.

  • Despite not meeting the original sales target, Melexis NV's 2024 sales were broadly stable and outperformed many peers.

  • The company is cautiously optimistic about improving customer demand around summer 2025, based on inventory corrections and market forecasts.

Negative Points

  • Melexis NV did not achieve its original sales target of EUR1 billion for 2024, which was a disappointment.

  • Sales for the full year 2024 decreased by 3% compared to the previous year, with a notable 21% decrease in Q4 sales year-over-year.

  • The operating result for 2024 decreased by 16% compared to 2023, reflecting challenges in maintaining profitability.

  • The net result for 2024 saw an 18% decrease compared to the previous year, impacting earnings per share.

  • The company is experiencing ongoing customer inventory corrections, which are expected to continue into the first half of 2025, affecting short-term sales outlook.