Latour (LATO) Q4 2024 earnings summary

Executive summary

• Net asset value per share increased by 11% to SEK 215, outperforming the SIXRX index; the listed portfolio delivered a total return of 14.3% and strong profit levels.

• Order intake and net sales grew organically in 2024, with profitability and cash flow remaining strong despite a weak business climate and global turbulence.

• Several acquisitions were completed, adding nine businesses and close to SEK 3 billion in annual net sales, with acquisition activity increasing compared to 2023.

• Wholly owned industrial operations ended the year with a strong quarter and high profit levels, showing resilience despite recession and geopolitical uncertainty.

• The board proposes a dividend increase, with SEK 4.60 or SEK 5.00 per share suggested, reflecting strong profit development and financial position.

Financial highlights

• Net asset value at year-end was SEK 137.7 billion, or SEK 215 per share; share price at year-end SEK 276, a 28% premium.

• Full-year operating profit was SEK 3.7 billion, slightly down from SEK 3.8 billion; EBIT margin for industrial operations at 14.3%.

• Order intake grew 5% and net sales 1% for the year; organic order intake up 1%, organic net sales down 2%.

• Cash flow from operations reached SEK 3.7 billion, with cash holdings at year-end of SEK 2.96 billion.

• Net debt at year-end was 12.3% or 13.6% of capital, with equity ratio at 83%.

Outlook and guidance

• Management expects margin recovery to 2023 levels or above if market conditions improve, with strong cost control and gross margins.

• Acquisitions in 2024 and early 2025 are expected to add 9% acquired growth to 2025 top-line figures.

• The board proposes a dividend increase to SEK 4.60 or SEK 5.00 per share, up 12.2%, reflecting strong profit development.

• Demand is expected to remain good but vary between geographies and sectors; construction and real estate markets remain slow, but energy efficiency trends are positive.

• Continued focus on long-term sustainable growth and value creation, with strong financial position supporting further acquisitions.