In This Article:
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Net Sales Growth: 5% increase in net sales for Q4 2024.
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EBIT per Kilo: Increased from SEK 1.69 to SEK 1.82.
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Dividend Proposal: SEK 2.50 per share, a 9% increase from last year.
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Ready-to-Cook Segment: 5% increase in net sales, 1% increase in volume; adjusted EBIT of SEK 63 million.
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Ready-to-Eat Segment: Net sales up 7%; EBIT of SEK 40 million, with a 6.2% EBIT margin.
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Operating Cash Flow: Supported by lower CapEx.
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Net Interest-Bearing Debt: Increased by SEK 240 million, with SEK 270 million from the Lithuania acquisition.
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CapEx Estimate: Approximately SEK 550 million for the year.
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Return on Capital Employed: Significant improvement compared to the previous year.
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Inventory Increase: 2% year-over-year increase in inventory.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Scandi Standard AB (FRA:0SL) reported a 5% growth in net sales for Q4 2024, supported by strong consumer trends.
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The company achieved its strongest fourth quarter in history, despite Q4 being seasonally weak.
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A 9% increase in the proposed dividend to SEK 2.50 per share reflects strong financial performance.
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The acquisition of a Ready-to-eat plant in the Netherlands will increase capacity for frozen breaded products by 90%, providing a solid growth platform.
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The company has achieved an A rating in the CDP for its sustainability efforts, highlighting its commitment to responsible practices.
Negative Points
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Start-up costs for the newly acquired Ready-to-cook platform in Lithuania amounted to SEK 14 million, impacting EBIT.
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The EBIT margin for the Ready-to-cook segment decreased year-on-year, even after adjusting for restructuring costs.
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Higher finance net costs were incurred due to increased debt levels and the expiration of favorable interest rate swaps.
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The company experienced a setback in lost time injury (LTI) measures, indicating challenges in employee safety.
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There is a risk of under-absorption of fixed costs due to the significant capacity expansion in the Netherlands.
Q & A Highlights
Q: Regarding the SEK 3 per kilo target by 2027, should we expect a gradual improvement or a back-end loaded growth? A: You will see a gradual improvement year-by-year. However, the ramp-up costs in Lithuania and the acquisition in Oosterwolde may make it slightly back-loaded. We are confident about reaching the SEK 3 per kilo target, as it is supported by both internal and external benchmarks. - Jonas Tunestal, CEO
Q: Can you provide details on the start-up costs for the Dutch acquisition? A: The total investment is SEK 28 million. We will provide more details in May, but the ramp-up costs are expected to be modest and not materially significant. - Jonas Tunestal, CEO