Alcadon Group (ALCA) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 increased by 2.0% to SEK 1,604 million, but Q4 sales declined by 9.8% year-over-year to SEK 389 million.

• Q4 2024 saw slower sales, with growth in data centers but challenges in broadband and structured cabling segments.

• EBITA for the year decreased by 12% to SEK 94 million, with Q4 EBITA down 37% to SEK 25 million, impacted by unrealised exchange rate losses and acquisition costs.

• Gross margin improved to 25.3% for the year and 25.7% in Q4, reflecting a focus on profitability over volume.

• No dividend proposed for 2024 to prioritize investment opportunities.

Financial highlights

• Full-year net sales: SEK 1,604 million (+2.0% year-over-year); Q4: SEK 389 million (-9.8% year-over-year).

• EBITA: SEK 94 million for 2024 (-12% year-over-year); Q4: SEK 25 million (-37% year-over-year).

• Earnings per share: SEK 1.54 for 2024 (vs. 1.76 in 2023); Q4: SEK 0.28 (vs. 0.68 in Q4 2023).

• Cash flow from operating activities: SEK 125 million for 2024 (SEK 5.24/share); Q4: SEK 39 million (SEK 1.59/share).

• Equity ratio increased to 52% from 44% at year-end 2023.

Outlook and guidance

• Management expects continued moderate demand in 2025, with a focus on profitability and selective growth.

• Certain optimism for 2025, but management remains cautious and prepared for continued headwinds.

• Financial targets remain: annual net sales growth of 20%, EBITA margin above 10%, and net debt/EBITDA between 2 and 3 over a business cycle.

• Mixed viewpoints on future investment pace, especially in broadband.

• Some positive market signals for 2025, but conditions vary by subsidiary and geography.