Q4 2024 Green Landscaping Group AB (publ) Earnings Call Transcript
Key Points
- Green Landscaping Group AB (FRA:2WN) achieved a 9% sales growth for the year 2024, with a 3% organic growth despite market headwinds.
- The company reported a strong EBITA margin of 8.3%, indicating solid profitability in challenging conditions.
- Cash flow from operating activities was robust, reaching SEK601 million for the full year, which is a strong performance compared to the EBITA of SEK528 million.
- The company successfully completed acquisitions of three new companies in the fourth quarter, aligning with their goal of 8 to 10 acquisitions for the year.
- The Norwegian segment showed impressive growth, with a 10% increase in sales and a healthy EBITA margin of 9.9% for the full year 2024.
- The Swedish segment underperformed, with a 4% decrease in net sales for the full year and a significant 21% drop in EBITA during the fourth quarter.
- The EBITA margin in Sweden fell to 5% from 6.1% the previous year, which was below expectations.
- The company faced challenges with increased competition and fewer contracts in the market, leading to more bidders on smaller projects.
- The mild winter in Stockholm and southern Sweden affected snow removal activities, potentially impacting revenue from winter services.
- The financial leverage, although reduced to 2.5 times, indicates a need for careful management to support future M&A activities.
Welcome to the Green Landscaping Group Q4 presentation 2024. (Operator Instructions) Now I will hand the conference over to the CEO, Johan Nordström; and CFO, Marcus Holmström. Please begin your meeting.
¶ - ()-
Thank you. And a warm welcome to you all. As mentioned, my name is Johan Nordström. And today, I'm joined by our new CFO, Marcus Holmström, who came aboard in -- finally came aboard in December after a long wait for him.
Marcus will walk us through the financial section of the presentation in just a few minutes. But first, let me just give an overview of the performance in 2024. So we conclude the year of 2024 with a 9% sales growth. And we had -- I would say a strong 3% organic.
And we reached an EBITA margin of 8.3%. And this is despite the headwinds we have faced in the market during the year. So from a financial perspective, I'm quite happy with the performance. We, as a company, have done for the full year of
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