In This Article:
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Net Sales: Decreased by 12% to SEK925 million from SEK1,048 million.
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EBITDA: Decreased to SEK71 million from SEK89 million.
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Operating Profit: Decreased to SEK28 million from SEK47 million.
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EBITDA Margin: Decreased to 7.6% from 8.5%.
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Gross Margin: Slightly decreased to 24.2% from 24.6%.
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Net Debt: Reduced to SEK716 million from SEK749 million.
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Equity Asset Ratio: Stands at almost 54%.
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Cash Flow from Operations: SEK288 million on a rolling 12-month basis, down from SEK503 million.
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Cash Conversion: 67% compared to 108% a year ago.
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ROCE: Stable at 10.1%.
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Dividend Proposal: SEK4 per share.
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Installation Services Sales: Decreased by 20%, mainly in Finland.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nordic Waterproofing Holding AB (LTS:0RH9) managed to keep its return on capital employed stable despite challenging market conditions.
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The board has unanimously recommended shareholders accept Kingspan's cash offer of SEK182.5 per share, which has been deemed fair by a financial perspective.
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The company reduced its net debt to SEK716 million from SEK749 million, showing effective debt management.
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Bitumen-based waterproofing solutions remained stable in Sweden, Norway, and Denmark.
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The company has maintained strong results and a good outlook in its Danish franchise units.
Negative Points
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Net sales decreased by 12% compared to the previous year, with no impact from acquisitions or currency effects.
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EBITDA decreased to SEK71 million from SEK89 million, indicating a decline in profitability.
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The demand for commercial new building has slowed due to higher interest rates, impacting sales.
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The Finnish market remains challenging, with no signs of improvement expected in the near future.
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Installation services, particularly in Finland, experienced decreased sales and weaker margins.
Q & A Highlights
Q: Can you provide an overview of the financial performance for the fourth quarter of 2024? A: Martin Ellis, President and CEO, stated that the company experienced a 12% decrease in net sales compared to the previous year, with all of it being organic. EBITDA decreased to SEK71 million from SEK89 million, and operating profit saw a similar decline. Despite these challenges, the company managed to keep its return on capital employed stable.
Q: What is the current status of the cash offer from Kingspan? A: Martin Ellis confirmed that Kingspan has made a cash offer of SEK182.5 per share to the shareholders of Nordic Waterproofing. The board has evaluated and unanimously recommends accepting the offer. Kingspan currently holds 87.4% of the shares, and the offer period ends on March 6.