Yahoo Finance

• Revenue: EUR 1.3 billion for the full year 2024, with a growth of 10.5% in comparable currencies.

• Segment EBITDA: EUR 185 million, representing 14.4% of sales.

• Segment Operating Profit: EUR 71.4 million for the full year.

• Dividend Proposal: EUR 0.24 per share.

• Q4 Net Sales Growth: Over 13%, primarily driven by Central Europe.

• Q4 EBITDA: EUR 67 million.

• Q4 Operating Profit: EUR 36 million.

• Equity Ratio: 52.5%.

• Interest-Bearing Net Debt: EUR 613 million.

• Heavy Tires Operating Profit Margin: 14% in Q4.

• Guidance for 2025: Net sales expected to grow, and segment operating profit as a percentage of net sales to improve compared to 2024.

• Warning! GuruFocus has detected 9 Warning Signs with NKRKF.

Release Date: February 04, 2025

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

Positive Points

• Nokian Tyres PLC (NKRKF) reported solid growth driven by Central Europe in 2024, with a 10.5% increase in sales in comparable currencies.

• The company is focusing on accelerating the startup of its new manufacturing platform in Romania, which is expected to significantly contribute to future growth.

• Nokian Tyres PLC (NKRKF) has a strong focus on sustainability, achieving a platinum medal for its Ecovadis certification, placing it in the top 1% of companies assessed.

• The company is expanding its operations in North America and Central Europe, with a strong emphasis on high-value segments like winter tires.

• Nokian Tyres PLC (NKRKF) is implementing a new organizational structure to enhance focus on strategic markets and operational excellence, aiming to drive growth and efficiency.

Negative Points

• The North American market faced challenges, delivering a soft quarter despite overall growth in other regions.

• The company experienced higher operating expenses in Q4, impacting the passenger car margin negatively.

• There was a negative impact on price and mix, particularly in the passenger car tire segment, affecting profitability.

• Nokian Tyres PLC (NKRKF) is still in the ramp-up phase for its new manufacturing facilities, which may continue to incur additional costs.

• The company's net debt to segment EBITDA ratio was more than 3 times at the end of the year, indicating a need for improved cash flow management.

Q & A Highlights

Q: Can you clarify the dividend policy for 2025? Is the EUR 0.25 per share the final consideration, or could there be additional payments later in the year? A: The Board is proposing a dividend of EUR 0.25 per share, to be paid in one installment in May. There is no additional dividend proposed for 2025.