In This Article:
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nilfisk Holding AS (FRA:NF1) achieved organic growth of 1.2% in 2024, driven by strong gross margin expansion and efficiency improvements.
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The company maintained its leadership position in EMEA and introduced several new innovative products, contributing to positive momentum.
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Nilfisk Holding AS (FRA:NF1) achieved a significant increase in its gross profit margin to 42.2%, the highest level since 2017.
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The company is focusing on innovation and sustainable products, with plans to launch more products in 2025 than in 2024.
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Nilfisk Holding AS (FRA:NF1) was awarded an Ecovadis gold medal for the third consecutive year, placing it in the top 5% of companies globally for sustainability.
Negative Points
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Nilfisk Holding AS (FRA:NF1) faced challenges in North America and market headwinds in APEC, impacting its professional and service businesses.
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The company's financial performance in 2024 was below initial expectations, with revenue growth not meeting targets.
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The US market experienced a slowdown, with lower demand in professional and service businesses due to weak spending in education and manufacturing.
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Hurricane Milton caused a 7 million loss in revenue from the high-pressure water business in the US.
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Nilfisk Holding AS (FRA:NF1) anticipates continued uncertainty from potential trade barriers and dealer consolidation in North America.
Q & A Highlights
Q: How is it possible to save 8 million in overhead costs after a decade of restructuring initiatives? A: The cost improvements stem from digitalization efforts and process improvements within support functions like finance and IT. Significant investments made in 2024 have led to structural improvements that we are now able to harvest. Reinhard Meyer, CFO
Q: What are you doing differently this time to ensure the success of new strategic initiatives? A: We are setting clear targets and expectations, enhancing our operating model by putting more decision-making closer to the customer, and focusing on key processes in product development and supply chain. This approach aims to improve agility and execution. Jon Sinton, CEO
Q: Given the introduction of new products in the US, shouldn't there be decent revenue growth in 2025? A: While we do see an impact from new products, we are also normalizing our order book, which is expected to result in a neutral development. Reinhard Meyer, CFO