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Schouw & Co AS (FRA:5RF) Q4 2024 Earnings Call Highlights: Record Cash Flow and EBITDA Amid ...

In This Article:

  • Revenue: Decreased 7% to DKK34.7 billion.

  • EBITDA: Increased 3% to DKK2.93 billion.

  • Cash Flow from Operations: Up 44% to DKK2.5 billion.

  • Net Working Capital: Reduced to DKK6.77 billion.

  • Net Debt: Decreased with leverage well below 2% on EBITDA.

  • Investment Level: DKK685 million.

  • Dividend and Share Buyback: DKK644 million.

  • BioMar Revenue: Down 70% to DKK16.6 billion.

  • BioMar EBITDA: Up 18% to DKK1.47 billion.

  • BioMar Cash Flow: DKK1.6 billion.

  • GPV Revenue: Down 15% to DKK8.9 billion.

  • GPV EBITDA: Down 16% to DKK625 million.

  • HydraSpecma Revenue: Up 2% to DKK3.0 billion.

  • HydraSpecma EBITDA: Up 5% to DKK339 million.

  • BORG Revenue: Up 5% to DKK2 billion.

  • BORG EBITDA: Up 11% to DKK171 million.

  • Fibertex Personal Care Revenue: Flat at DKK1.9 billion.

  • Fibertex Personal Care EBITDA: Down 29% to DKK187 million.

  • Fibertex Nonwovens Revenue: Up 4% to DKK2.2 billion.

  • Fibertex Nonwovens EBITDA: Up 15% to DKK194 million.

Release Date: March 06, 2025

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

Positive Points

  • Schouw & Co AS (FRA:5RF) achieved a record high EBITDA of DKK2.93 billion, up 3% from the previous year.

  • The company reported an all-time high cash flow from operations, increasing by 44% to DKK2.5 billion.

  • BioMar, the largest company in Schouw & Co's portfolio, delivered a strong EBITDA growth of 18% to DKK1.47 billion.

  • HydraSpecma achieved a milestone by surpassing DKK3 billion in turnover, with a 5% increase in EBITDA.

  • Fibertex Nonwovens reported a 15% increase in EBITDA, driven by strong performance in European markets.

Negative Points

  • Overall revenue for Schouw & Co AS (FRA:5RF) decreased by 7% to DKK34.7 billion in 2024.

  • BioMar's top line was down 70% to DKK16.6 billion, despite strong EBITDA performance.

  • GPV experienced a 15% decline in revenue and a 16% drop in EBITDA due to volatile markets and soft demand.

  • Fibertex Personal Care faced challenges in Asian markets, resulting in a 29% decrease in EBITDA.

  • BORG struggled with significant salary increases in Poland, impacting its ability to offset costs through pricing.

Q & A Highlights

Q: Can you provide an update on the potential IPO of BioMar and any expected timeline for a decision? A: We are still investigating and working hard on it. A decision could only be made in the second half of 2025 if we proceed. We are getting closer to a decision, but no specific dates can be confirmed at this time. - Jens Bjerg Soerensen, CEO

Q: BioMar delivered strong performance in 2024 with an EBITDA margin at the upper end of your long-term ambition. Is this range still considered sustainable? A: Yes, we believe the current range is sustainable long-term. The market fluctuates, and factors like market mix and product mix play a role. We maintain a good position and expect to continue within this range. - Jens Bjerg Soerensen, CEO