Sabaf (SAB) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached a record EUR 285.1 million, up 19.8% year-over-year, with adjusted revenue at EUR 277 million (+15.8%).

• EBITDA margin improved to EUR 40.4 million (+22.2%), with EBITDA/revenue at 14.6% versus 13.8% in 2023.

• EBIT rose to EUR 21.2 million (+21.2%), and net result increased to EUR 16.16 million (+12.7%).

• Growth was driven by international expansion, new product lines, and increased production capacity, especially in Mexico and India.

• Q4 2024 saw a slowdown due to customer destocking, with normalised revenue up 2.9% and normalised net profit down 41% year-over-year.

Financial highlights

• Q4 2024 revenue was EUR 64.7 million (+2.9% year-over-year), but EBITDA margin declined to EUR 8.3 million (-4.9%).

• Net financial debt at year-end was EUR 73.9 million, slightly up from EUR 73.2 million.

• Net investment in 2024 was EUR 14.7 million, down from EUR 16.9 million in 2023.

• Dividend proposal of EUR 0.58 per share, up from EUR 0.54.

• Operating free cash flow was EUR 12.3 million, down from EUR 22.9 million in 2023.

Outlook and guidance

• Sustained growth expected in 2025, driven by all divisions and the ramp-up of the Mexican plant.

• Order intake in Q1 2025 is strong, with expected revenue growth of 6%-10%.

• Margin recovery anticipated in Q1 2025, with further improvement from efficiency measures and volume growth.

• Risks from geopolitical tensions and US policy changes are mitigated by global production footprint.

• Induction business expected to grow from EUR 500,000 in 2024 to potentially several million in 2025, though forecasts are uncertain.