Q4 2024 Boreo Oyj Earnings Call Transcript
Key Points
- Boreo Oyj (FRA:YKK) managed to secure and defend profitability through pricing actions and reducing fixed costs, achieving an operational EBIT of EUR6.8 million, which is 5.1% in relation to sales.
- The company generated a strong operative cash flow of over EUR20 million in the last two years, with EUR7 million in the last quarter of 2024.
- The electronics business area showed improved profitability, with a strong performance from SSN and Milken, contributing to a 31% sales growth in Q4 compared to the previous year.
- Boreo Oyj successfully managed working capital, bringing it down to EUR25 million by the end of 2024, which supported strong operational cash flows.
- The company extended its credit facilities by one year and postponed loan repayments, maintaining a liquidity of EUR24.5 million at the end of 2024.
- Boreo Oyj experienced a 17% decline in sales throughout 2024, primarily due to challenges in construction-related businesses and industrial exposure.
- The company's financial standing is not where it wants to be, with leverage elevated at 2.8 times net debt to operational EBIT.
- Technical trade business area faced a challenging operating environment, with an 11% sales decline in Q4 compared to the previous year.
- The Putzmeister business in Finland continued to suffer from a tough market, with uncertain demand outlook going forward.
- Despite improvements, the return on capital employed remains low at 8%, and leverage is higher than desired, indicating financial challenges.
Good morning and a warm welcome to Boreos year 2024 financial Review webcast. My name is Kari Nerg. I'm the CEO of the firm and, together with our CFO, Jesse Petaja we will recap the happenings of '24 and more specifically, the latest quarter of 2024.
Agenda is briefly as follows, so, I'll start, looking at, the entire year, painting a bit of the picture on the last 5 years. And then, yes, I will take the review and discuss the Q4, events in a more specific manner. If you have any questions as normal, please use the chat function which is there, made available through the platform.
Starting off first, with some key highlights, of 2024. Overall, it was a challenging, year, for the firm, our priorities, during the year were, primarily on working with our existing, portfolio of 22 companies. The overall themes and the general themes throughout the year, we, controlling costs, managing our balance sheet.
So, focused on, optimizing, working capital and through
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