Q4 2024 Midsona AB Earnings Call Transcript
Key Points
- Midsona AB (FRA:9KF) reported a significant improvement in EBIT, increasing from SEK29 million in 2023 to SEK128 million in 2024.
- The company achieved a notable increase in gross profit margins, rising from 25.9% to 28.7%, despite high raw material prices.
- Leverage has been significantly reduced, with the net debt-EBITDA ratio decreasing from 4.4 times in 2022 to 1.6 times at the end of 2024.
- The Board is proposing a dividend of SEK0.20 per share, reflecting improved financial standing.
- Midsona AB (FRA:9KF) achieved a CDP A rating, indicating progress in sustainability efforts.
- The company experienced negative organic sales growth, attributed to strategic decisions to exit low-margin contracts.
- Sales in the Nordics declined due to the exit from unprofitable Christmas contracts, impacting EBIT.
- The South Europe division remains a challenge, with EBIT still negative despite growth in the division.
- Organic sales growth target of 3% to 5% was not met, with a decline of 0.7% in 2024.
- Cash flow from operating activities was SEK59 million weaker than the previous year due to less favorable working capital effects.
Thank you for attending this call. As a top line summary, I can conclude that we took step forward results in the fourth quarter. We showed good absolute EBITDA margin improvement. Our leverage continues to decrease. And as a result, the Board is proposing a dividend to the shareholders.
We want to make you aware that this presentation contains certain forward-looking statements and that such statements can be subject to risk and uncertainty. And for a view on the risks and opportunities, we refer to the annual report.
So let's start by looking at the full year. And we're very happy about the progress that we have made. EBIT before one-off items amounted to SEK128 billion compared to SEK60 million last year's before one-off items. Taking one-off items into account, so looking at absolute EBIT, it improved from SEK29 million in 2023 to SEK128 million in '24.
We have significantly reduced our complexity and thereby we have step changed the gross profit margins. It's clear that our efforts to simplify the business and
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