In This Article:
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EBIT Before One-Off Items: SEK128 million for the full year, up from SEK60 million last year.
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Absolute EBIT: Improved from SEK29 million in 2023 to SEK128 million in 2024.
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Gross Margin: Increased to 28.7% for the full year, up from 25.9% the previous year.
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Net Debt-EBITDA Ratio: Reduced from 2.7 times in 2023 to 1.6 times at the end of 2024.
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Dividend Proposal: SEK0.20 per share.
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Fourth Quarter EBIT: SEK36 million, up from SEK22 million last year.
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Fourth Quarter Gross Margin: Improved by 3.5 percentage points to 28.9%.
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Organic Sales Growth: Negative, with a 5% growth in organic products in Q4.
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Net Sales Decline: 4.1% for the quarter.
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Cash Flow from Operating Activities: SEK98 million for the quarter.
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Available Cash: SEK628 million at the end of the quarter.
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Tax Cost: SEK28 million for the full year, with a tax rate of 37%.
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Midsona AB (FRA:9KF) reported a significant improvement in EBIT, increasing from SEK29 million in 2023 to SEK128 million in 2024.
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The company achieved a notable increase in gross profit margins, rising from 25.9% to 28.7%, despite high raw material prices.
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Leverage has been significantly reduced, with the net debt-EBITDA ratio decreasing from 4.4 times in 2022 to 1.6 times at the end of 2024.
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The Board is proposing a dividend of SEK0.20 per share, reflecting improved financial standing.
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Midsona AB (FRA:9KF) achieved a CDP A rating, indicating progress in sustainability efforts.
Negative Points
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The company experienced negative organic sales growth, attributed to strategic decisions to exit low-margin contracts.
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Sales in the Nordics declined due to the exit from unprofitable Christmas contracts, impacting EBIT.
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The South Europe division remains a challenge, with EBIT still negative despite growth in the division.
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Organic sales growth target of 3% to 5% was not met, with a decline of 0.7% in 2024.
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Cash flow from operating activities was SEK59 million weaker than the previous year due to less favorable working capital effects.
Q & A Highlights
Q: Could you give us an idea of the tailwinds and headwinds you're seeing into 2025 compared to 2024? A: (Peter Asberg, CEO) We have seen stabilization in most markets. With inflation and interest rates coming down, consumers are more bullish, which benefits us. We expect consumers to spend more on organic products, giving us a positive outlook for 2025, despite some risks.