Nolato (NOLA) Q4 2024 earnings summary

Executive summary

• Q4 sales rose 5% year-over-year to SEK 2,382 million, with organic growth in both business areas and a 36% rise in operating profit to SEK 240 million; operating margin exceeded 10%.

• Full-year 2024 sales reached SEK 9,664 million, up 1% currency-adjusted, with EBITA up 26% to SEK 958 million and margin at 9.9%; EPS was SEK 2.44.

• Strong cash flow from operations (SEK 1,377 million for the year, SEK 480 million in Q4) and reduced net financial liabilities to SEK 671 million.

• Dividend proposal remains at SEK 1.5 per share, representing a 61% payout ratio.

• Board signals readiness for investments and acquisitions, supported by low leverage and strong cash flow.

Financial highlights

• Q4 net sales: SEK 2,382 million (up 5% year-over-year); EBITA up 36% to SEK 240 million; margin at 10.1%.

• Full-year EBITA margin at 9.9%, with cash conversion at 86% (up from 65%).

• Return on capital employed improved to 12.3% (from 9.0%).

• Net financial liabilities/EBITDA at 0.4x; equity/assets ratio at 59%.

• Cash flow after investments (excluding acquisitions) increased to SEK 743 million.

Outlook and guidance

• Board proposes an unchanged dividend of SEK 1.50 per share, with a payout ratio of 61%.

• Automotive segment expected to face continued weakness into early 2025.

• Investments for 2025 projected between SEK 800–850 million, mainly for Medical Solutions projects.

• Strategic price revisions, cost savings, and innovation to support profitability and growth.

• New long-term supply agreement in Medical Solutions to generate significant sales within five years.