HAKI Safety (HAKI) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw net sales rise 8% to SEK 292M, with organic growth of 11% despite a soft market; full-year net sales declined 12% to SEK 1,050M, mainly due to divestments and acquisitions.

• Adjusted EBITA for Q4 increased 32% to SEK 25M; full-year adjusted EBITA was SEK 77M, down from SEK 95M in 2023.

• Net result after tax for Q4 was SEK 10M (up from SEK 7M); full-year net result was SEK 41M (down from SEK 62M).

• The Board proposes a dividend of SEK 0.50 per share, reflecting ongoing acquisition activities.

Financial highlights

• Q4 gross margin improved to 36.0% (from 33.2%); full-year gross margin was 35.8% (33.4%).

• Adjusted EBITA margin for Q4 was 8.6% (7.0%); full-year margin was 7.3% (8.0%).

• Cash flow from operating activities in Q4 was SEK 14M (down from SEK 71M); full-year cash flow was SEK -4M (down from SEK 153M), mainly due to investments in strategic rental materials.

• Earnings per share before dilution: SEK 0.37 in Q4 (0.26), SEK 1.50 for the year (2.27).

• Net debt increased to SEK 380M (from SEK 298M); financial net debt/adjusted EBITDA excl. IFRS 16 was 2.8x (1.9x).

Outlook and guidance

• Management expects continued uncertainty in the short term due to geopolitical and macroeconomic factors, but remains confident in long-term positioning.

• Financial targets: net sales of SEK 2,000M by 2027, adjusted EBITA margin >10%, and net debt/adjusted EBITDA <2.5x.