Q4 2024 Storskogen Group AB (publ) Earnings Call Transcript
Key Points
- Storskogen Group AB (STU:0VK) achieved the strongest recorded quarterly cash flow in its history at almost SEK1.7 billion.
- 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.
- Operational efficiency measures led to a 32% year-over-year increase in adjusted EBITA for the Services business area.
- 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.
- 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.
- Sales declined by 5% in the fourth quarter, primarily driven by divestments, with organic growth remaining flat.
- The market for companies exposed to construction remains soft, impacting certain business units.
- Consumer demand remains muted, affecting the Trade business area, although there are signs of gradual recovery.
- Global uncertainties, particularly in markets like Germany and the UK, make it difficult to predict full demand recovery.
- Despite improvements, return on equity and return on capital employed are still below acceptable levels according to the company's standards.
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Good morning, and welcome to the presentation of Storskogen's year-end report for 2024. I'm Christer Hansson, and joining me today, as always, Lena Glader, Storskogen's CFO.
It's been an intense yet rewarding year since stepping into the role as CEO. And I'm pleased with the progress that we have made across our operations over the past year, and I'm confident that we are moving in the right direction.
Looking at the fourth quarter, it stands out as one of our stronger quarters since our IPO in terms of several key metrics, and I'm eager to get into the details with you. So let's begin with an overview of Storskogen before we take a closer look at the quarter's highlights.
Storskogen is a diversified international business group with sales of SEK34.2 billion over the last 12 months and adjusted EBITA of SEK3.2 billion spread across our three business areas. I'm especially happy to note that services and industry track above 10% margin on an annual basis. Following the several
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