Alcadon Group (ALCA) Q1 2025 earnings summary

Executive summary

• Net sales rose 1.1% year-over-year to SEK 404 million, with growth in data centers but continued challenges in broadband/fiber roll-out, especially in Germany and Belgium.

• Adjusted EBITA declined 20% year-over-year to SEK 22 million, while unadjusted EBITA rose 45% to SEK 31 million due to one-time effects.

• Profit for the period declined to SEK 8.1 million from SEK 13.6 million year-over-year; EPS was SEK 0.33 (0.62).

• Inventory reductions improved working capital, despite market headwinds.

• No dividend proposed for 2024, prioritizing investment opportunities.

Financial highlights

• Organic growth (including currency effects) was -6.3%, while acquired growth contributed 7.4%.

• Gross margin strengthened by 1 percentage point to 25.2% (24.3%).

• Adjusted EBITA fell from 27 to 22 MSEK (-20%), while unadjusted EBITA increased from 21 to 31 MSEK (+45%).

• Earnings per share were 0.33 SEK (down from 0.62 SEK year-over-year).

• Operating cash flow per share was 0.45 SEK (down from 0.56 SEK year-over-year); cash flow from operating activities was SEK 11 million.

Outlook and guidance

• Data centers expected to continue positive growth, with further potential in several markets.

• Broadband/fiber roll-out remains challenging, particularly in Germany and Belgium, with no immediate recovery expected.

• Focus remains on margin improvement, working capital efficiency, and adapting to market conditions.

• Long-term targets: annual net sales growth of 20%, EBITA margin above 10%, net debt/EBITDA between 2 and 3.