Malmbergs Elektriska (MEAB) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was SEK 516.5 million, down from SEK 598.7 million year-over-year, mainly due to lower volumes and market conditions.

• Operating income was SEK -25.4 million, compared to SEK 11.5 million in 2023; result before tax was SEK -24.1 million.

• Net result after tax was SEK -24.5 million, or SEK -3.06 per share, versus SEK 9.6 million (SEK 1.21 per share) last year.

• One-time structural costs of SEK 8.9 million impacted the quarter; excluding these, operational results were positive.

• Cash flow from operations was SEK 6.1 million, sharply down from SEK 89.8 million in 2023.

Financial highlights

• Gross margin and operating margin declined; operating margin was -4.9% (1.9% in 2023).

• Return on equity was -7.0% (2.6% in 2023); return on total capital was -4.1% (2.6%).

• Solid equity ratio at 66.8% (66.1% in 2023); cash liquidity dropped to 95.7% from 131.2%.

• Inventory increased to SEK 251 million from SEK 238 million, reflecting strategic product investments.

• No dividend proposed for 2024 (SEK 2.00 per share in 2023).

Outlook and guidance

• Management expects cautious market recovery in 2025, with continued demand for value-priced products.

• Strategic focus remains on sustainable solutions, innovation, and strengthening customer relationships.

• Ongoing efficiency improvements in store network and digitalization to adapt to new consumption patterns.