B3 Consulting Group (B3) Q4 2024 earnings summary

Executive summary

• Revenue for FY 2024 was SEK 1,129.3 million, down 1.0% year-over-year, with organic decline of 5.7%.

• Q4 2024 sales grew 14.5% year-over-year to SEK 336.2 million, driven by acquisitions in Poland and Webstep, despite a challenging Swedish market.

• EBITDA for FY 2024 was SEK 57.5 million (margin 5.1%), down from SEK 107.3 million (margin 9.4%) in 2023.

• Profit after tax for FY 2024 was SEK 85.2 million, mainly due to a SEK 77.8 million one-off remeasurement gain; adjusted profit after tax was SEK 7.4 million.

• No dividend proposed for 2024; capital prioritized for M&A and future growth.

Financial highlights

• Q4 EBITDA was SEK 17.8 million (margin 5.3%), down from SEK 18.6 million (margin 6.3%) in Q4 2023.

• Q4 operating profit (EBIT) was SEK 8.8 million (2.6% margin), down from SEK 13.2 million (4.5%) year-over-year; adjusted EBIT margin was 4.5% after non-recurring items.

• Full-year EBIT was SEK 26.3 million (2.3% margin), down from SEK 86.1 million (7.5%); adjusted EBIT margin was 3.9%.

• Cash flow from operations for FY 2024 was SEK -14.7 million, down from SEK 67.8 million.

• Earnings per share after dilution was SEK 9.56, but only SEK 0.63 adjusted for the remeasurement effect.

Outlook and guidance

• Market is expected to recover, with analysts indicating a positive trend.

• Polish market outlook is improving; Sweden remains challenging.

• Focus remains on operational improvements, utilization, and efficiency into 2025.

• Financial targets: SEK 1.5 billion in annual sales by end of 2025, 10% EBIT margin over time, and borrowings below 2.0x EBITDA.

• Generative AI presents both opportunities and risks.