Reka Industrial (REKA) Q4 2024 earnings summary

Executive summary

• Group turnover for 2024 was EUR 27.2 million, down from EUR 91.6 million in 2023 due to the sale of Reka Cables; EBITDA was EUR 0.4 million, compared to EUR 37.6 million in 2023.

• Rubber segment is now the sole business, with turnover of EUR 27.2 million and EBITDA of EUR 1.4 million for 2024.

• Profitability was impacted by lower volumes and increased costs, but efficiency measures and cost transfer to prices are ongoing.

• Cash and cash equivalents at year-end were EUR 26.4 million, with funds mainly in low-risk investments.

• Dividend of EUR 0.07 per share proposed for 2024, following a EUR 2.00 per share dividend in 2023 after the Reka Cables sale.

Financial highlights

• Group result for 2024 was EUR 0.4 million, down from EUR 34.5 million in 2023 (which included a EUR 31.0 million profit from the Reka Cables sale).

• Q4 2024 turnover was EUR 6.5 million (Q4 2023: EUR 7.0 million); Q4 EBITDA was EUR 0.3 million (Q4 2023: EUR -0.4 million).

• Earnings per share for 2024 was EUR 0.07 (2023: EUR 5.77).

• Operating profit margin for 2024 was -3.2% (2023: 39.7%).

• Gross investments totaled EUR 1.6 million in 2024, unchanged from 2023.

Outlook and guidance

• Market uncertainty and low order volumes in the Rubber segment are expected to persist into 2025.

• Focus remains on improving productivity, cost efficiency, and investing in production technology for long-term growth.

• Funds will continue to be invested in low-risk instruments during the ongoing strategy process.