Full Year 2024 Wolters Kluwer NV Earnings Call Transcript
Key Points
- Wolters Kluwer NV (WOLTF) achieved 6% organic growth and improved its adjusted operating profit margin.
- Diluted adjusted earnings per share increased by 11% in constant currencies, and adjusted free cash flow rose by 9%, exceeding expectations.
- The company made significant progress in its strategic objectives, with Expert Solutions growing 7% organically and recurring cloud software revenues increasing by 16%.
- Return on invested capital increased to 18.1%, and the company maintained a strong balance sheet with a leverage ratio of 1.6 times.
- Wolters Kluwer NV (WOLTF) returned significant value to shareholders through increased dividends and a EUR1 billion share buyback.
- Corporate Performance and ESG division experienced lower-than-expected growth due to a decline in on-premise software licenses.
- The adjusted operating profit margin included a one-time noncash pension amendment gain, which contributed to the margin increase.
- Adjusted net finance costs increased due to lower interest income and higher coupon interest on refinanced debt.
- The benchmark effective tax rate increased to 23.1% due to unfavorable movements in deferred tax positions and other factors.
- The company expects organic growth to be more modest in the first two quarters of 2025 due to challenging comparables in Health and Tax and Accounting divisions.
Good day, and thank you for standing by. Welcome to the Wolters Kluwer full year 2024 results webcast and conference call. My name is Lauren, and I will be your coordinator for today's event. (Operator Instructions) Please be advised that today's call is being recorded.
I will now hand you over to your host, Meg Geldens, Vice President, Investor Relations, to begin today's conference. Please go ahead.
Thank you, Lauren. Good morning, and welcome to the Wolters Kluwer Full year 2024 Results Call. Today's earnings release and the accompanying slides are available for download from the Investors section of our website, wolterskluwer.com. With me on the call today are Nancy McKinstry, our CEO; and Kevin Entricken, our CFO. Nancy Kevin will discuss the important aspects of our 2024 results, and we'll take your questions at the end.
Before we start, I'll remind you that some statements we make today may be forward-looking. We caution that these statements are subject to risks and
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