In This Article:
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Sales: SEK8.6 billion in Q4 2024.
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Adjusted EBITA: SEK849 million in Q4 2024.
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Adjusted EBITA Margin: 9.9% in Q4 2024.
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Cash Flow: Highest recorded quarterly cash flow at SEK1.7 billion in Q4 2024.
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Cash Conversion Rate: 97% in Q4 2024.
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Leverage Ratio: 2.3 times EBITDA, lowest since Q1 2022.
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Organic EBITA Growth: 12.8% in Q4 2024.
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Net Profit: Adjusted net profit increased by 228% to SEK376 million in Q4 2024.
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Earnings Per Share: Adjusted EPS grew by 321% to SEK0.19 in Q4 2024.
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Interest-Bearing Net Debt: Below SEK10 billion for the first time since Q1 2022.
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Available Liquidity: SEK4.9 billion at the end of 2024.
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Services Margin Improvement: Increased from 8.8% in Q4 2023 to 13.2% in Q4 2024.
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Trade Organic Sales Growth: 5% in Q4 2024.
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Industry Margin: 10.5% in Q4 2024.
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Storskogen Group AB (STU:0VK) achieved the strongest recorded quarterly cash flow in its history at almost SEK1.7 billion.
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The company reported a significant margin improvement, with an adjusted EBITA margin of 9.9% for the fourth quarter, marking the strongest quarterly margin since its IPO.
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Operational efficiency measures led to a 32% year-over-year increase in adjusted EBITA for the Services business area.
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Interest-bearing net debt decreased to below SEK10 billion for the first time since Q1 2022, with the leverage ratio reaching its lowest level since then at 2.3 times EBITDA.
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The company is well-positioned to resume acquisitions in Q2 or Q3 of the year, supported by strong cash flow and a lower interest rate environment.
Negative Points
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Sales declined by 5% in the fourth quarter, primarily driven by divestments, with organic growth remaining flat.
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The market for companies exposed to construction remains soft, impacting certain business units.
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Consumer demand remains muted, affecting the Trade business area, although there are signs of gradual recovery.
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Global uncertainties, particularly in markets like Germany and the UK, make it difficult to predict full demand recovery.
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Despite improvements, return on equity and return on capital employed are still below acceptable levels according to the company's standards.
Q & A Highlights
Q: Given the solid cash flow and potential lower interest rates, do you feel that reaching the lower end of your 2 to 3 times net debt-to-EBITDA target is too cautious before initiating more acquisition growth initiatives? A: Christer Hansson, CEO: We believe we can start acquisitions in Q2 or Q3 of this year, as we are comfortable with our current position at 2.3 times, the lowest in three years. Lena Glader, CFO: When we refer to the lower end, we mean between 2 times and 2.5 times, not 2.0 times.