Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- HusCompagniet AS (OCSE:HUSCO, Financial) reported a significant increase in revenue for Q4 2024, reaching DKK647 million, marking the highest quarterly revenue since Q1 2023.
- The company achieved a 66% increase in sales for 2024, translating into 1,414 units sold, with notable growth in both the detached and semi-detached segments.
- HusCompagniet AS (OCSE:HUSCO) maintained a solid gross profit of DKK508 million for the year, with a margin of 22.1%, despite a decline in revenue.
- The order backlog increased by 57% from the end of 2023, reaching DKK2.4 billion, indicating strong future demand.
- The company launched several new strategic initiatives, including the FORMIUM high-end concept and the MORROW wood-based B2B concept, to expand its market reach and offer innovative solutions.
Negative Points
- Revenue for the full year 2024 was DKK2.3 billion, approximately 4% lower than in 2023, due to low activity in Sweden and delays in obtaining building permits for some B2B projects.
- The free cash flow was negative by DKK21 million in Q4 2024, impacted by changes in working capital and increased work in progress.
- The average sales price in the semi-detached segment was lower than expected, affecting the gross margin, which was 20.6% in Q4.
- The Swedish market remained challenging, with a more than 60% decline in deliveries, impacting overall performance.
- Higher financial costs and a tax increase impacted the 2024 income statement, with potential additional expenses if tax authorities maintain their position on historical tax matters.
Q & A Highlights
Q: What are the expectations for SG&A costs in 2025, given the increase in 2024?
A: Allan Auning-Hansen, CFO, stated that there will be a significant ramp-up in SG&A costs in 2025 to support growth, particularly in the B2B business. However, he did not quantify the exact increase.
Q: Can you explain the impact of discontinued operations on EBITDA for 2024 and expectations for 2025?
A: Allan Auning-Hansen explained that the impact of discontinued operations on EBITDA was DKK3 million in 2024, compared to DKK400,000 in 2023. He does not expect any significant future impact from this.
Q: Why was the gross margin in the semi-detached business low at 16% in Q4, and is this the expected run rate going forward?
A: Allan Auning-Hansen clarified that the low margin was due to timing and mix of projects, not underperformance. He confirmed that future margins should be higher than 16%.
Q: What are the assumptions behind the 2025 guidance, particularly regarding market rebound and market share gains?
A: Allan Auning-Hansen noted significant market share gains in the semi-detached market and expects growth in the detached segment despite macroeconomic uncertainties. Martin Ravn-Nielsen, CEO, confirmed an increase in leads in the detached segment.
Q: How does the sales performance in early 2025 compare to Q4 2024, and is there any seasonality affecting sales?
A: Allan Auning-Hansen mentioned that sales in early 2025 are in line with expectations, despite fluctuations in recent years due to macroeconomic impacts. He did not attribute changes to seasonality.
Q: What are the capital allocation priorities for 2025, and are there plans to increase production capacity?
A: Allan Auning-Hansen stated that while there are no large investments planned, they are optimizing factories in Esbjerg and Sweden. They are also considering investments in digital efforts and opening new offices.
Q: Can you provide details on the net order backlog and its utilization in 2025?
A: Allan Auning-Hansen did not disclose specific details about the net order backlog utilization for 2025.
Q: What is the expected average sales price for the semi-detached business going forward?
A: Allan Auning-Hansen indicated that the average sales price of DKK1.2 million is expected to continue going forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
