Nordrest (NREST) Q4 2024 earnings summary

Executive summary

• Achieved 8.6% net sales growth in Q4 2024 and 7.7% for the full year, with organic growth of 8.6% and 7.1% respectively.

• EBITA increased to 51 MSEK in Q4 (from 42 MSEK), with a margin of 9.5% (up from 8.5%).

• Strong momentum across established and new units, with significant new customer wins and market expansion.

• Board proposes a dividend of SEK 5.00 per share for 2024, in line with the >50% payout target.

• Entered the Finnish market through the acquisition of Garam & Vermiglio Catering Oy, effective January 2025.

Financial highlights

• Q4 net sales: 534 MSEK (492 MSEK in Q4 2023), full year: 1,908 MSEK (1,771 MSEK in 2023).

• EBITA for the year: 169 MSEK (164 MSEK in 2023), margin 8.8% (down from 9.3%).

• Operating cash generation (R12): 89.3% (60.8% previous year).

• Net debt/EBITDA (R12): -0.6x (-0.1x previous year), indicating net cash position.

• EPS before dilution: Q4 SEK 2.77 (2.56); full year SEK 10.22 (8.13).

Outlook and guidance

• Medium-term targets: organic growth >10%, EBITA margin 8–10%, net debt/EBITDA <2.0x, dividend payout >50% of net profit.

• Continued strong organic growth and profitability expected, supported by expansion and new concepts.

• Expect continued strong demand in military, healthcare, and education segments, with municipalities and regions increasing preparedness.

• New Finnish market entry to drive further growth.