Q4 2024 Elmera Group ASA Earnings Call Transcript
Key Points
- Elmera Group ASA (FRA:1ZK) successfully mitigated the volume decrease due to mild weather through effective product management efforts.
- The company increased core margins in both the consumer and business segments, contributing to financial robustness.
- Net revenue increased year over year in all segments, and the company delivered on all financial targets for 2024.
- The proposed dividend of NOK3.00 per share represents an attractive payout to shareholders, supported by a gain from the sale of a 40% ownership in Metzum.
- The Business segment achieved a milestone of nearly 130,000 deliveries, showcasing a robust product range and strong track record.
- Mild weather led to a 9% reduction in volume sold year over year, impacting net revenue by NOK10 million to NOK15 million in the Consumer and Business segments.
- Increased competition during the seasonal trend from Black Week through Christmas temporarily impacted customer acquisition in the Consumer segment.
- Operating expenses increased in the fourth quarter, with OpEx temporarily hiked in the Nordic segment due to increased loss provisions and amortization.
- The company lost approximately 10,000 customers in the Consumer segment in 2024, partly due to changes in product offerings and increased competition.
- The Nordic segment experienced a 31% year-on-year volume reduction due to the phase-out of legacy fixed price products and mild weather.
Good morning and welcome to our fourth quarter 2024 presentation. My name is Rolf Barmen, Head of the Elmera Group. Our CFO, Henning Nordgulen, is as usual with me and will take us through the financials. Morten Opdal, our Head of Investor Relations, is also with us, and we'll take questions during the presentation and address them to Henning and myself in our Q&A session following the presentation.
As promised on the third quarter presentation, we have indeed worked very hard to replicate the strong results from the fourth quarter in 2023. And even though the volumes came in lower than expected due to mild weather, we delivered a bit just in line with the fourth quarter in 2023. We have successfully mitigated the volume decrease from high temperatures and reduced consumption through our product management efforts. We have increased core margins in both the consumer and the business segment. The changes in our product mix over the last years have also increased our financial robustness, which we now are reaping the benefits of
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