Multiconsult ASA (FRA:3MC) Q4 2024 Earnings Call Highlights: Revenue Growth Amidst ...

In This Article:

  • Net Operating Revenue: NOK 1.4 billion, a 6% increase from last year.

  • Organic Growth: 4.8% for the quarter.

  • EBITDA: NOK 98 million, a decrease of 17.2% from last year, with a margin of 6.8%.

  • Order Intake: NOK 1.8 billion for the quarter.

  • Order Backlog: NOK 4.9 billion.

  • Reported Profit for the Period: NOK 89.7 million, a decrease of NOK 23.2 million from last year.

  • Full Year Net Operating Revenue: NOK 5.384 billion, a 12.1% increase from last year.

  • Full Year EBITDA: NOK 523.4 million, a 24.8% increase from last year, with a margin of 9.7%.

  • Full Year Order Intake: NOK 6.454 billion.

  • Full Year Reported Profit: NOK 413.3 million, an increase of NOK 96.7 million from last year.

  • Dividend Proposal: NOK 10 per share.

  • Cash Flow from Operations: NOK 677 million.

  • Free Cash Flow: NOK 579 million for the year.

  • Employee Growth: 4.66% year over year.

  • Billing Ratio: 72.5% for the quarter, an increase of 0.7 percentage points from last year.

Release Date: February 11, 2025

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

Positive Points

  • Multiconsult ASA (FRA:3MC) reported a 6% increase in net operating revenue for Q4 2024, reaching NOK 1.4 billion.

  • The company achieved an organic growth rate of 4.8% and maintained a high billing ratio of 72.5%, an improvement from the previous year.

  • The order intake for the fourth quarter was the highest ever for this period, amounting to NOK 1.8 billion, with a solid order backlog of NOK 4.9 billion.

  • Multiconsult ASA (FRA:3MC) has a diversified portfolio and a strong presence in multiple countries, executing 15,000 projects annually for over 5,500 clients.

  • The board of directors proposed a dividend of NOK 10 per share, reflecting confidence in the company's financial health and future prospects.

Negative Points

  • EBITDA for Q4 2024 decreased by 17.2% compared to the previous year, with a margin drop from 8.7% to 6.8%.

  • Increased employee benefit expenses and other operating costs negatively impacted the company's profitability.

  • The Oslo region experienced a decrease in net operating revenue by 3.5% due to project control effects and organizational changes.

  • Sick leave and parental leave posed challenges, contributing to a gap between full-time equivalents and the number of employees.

  • The company faced challenging market conditions in certain regions, particularly in the Oslo market, leading to temporary layoffs.

Q & A Highlights

Q: Can you quantify the year-on-year negative impact related to net project write-downs? A: Yes, we refer to the annual reports. The change was between 1% and 2% in 2022, and below 1% in 2023.

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