Scandi Standard (SCST) Q4 2024 earnings summary

Executive summary

• Achieved the strongest Q4 in company history, with 5% net sales growth to MSEK 3,170, driven by volume and mix effects, despite Q4 being seasonally weakest.

• Operating income (EBIT) rose 2% to MSEK 107, with adjusted EBIT margin stable at 3.4%.

• Structural growth supported by strong consumer trends and successful country improvement programs.

• Significant acquisitions in Lithuania (ready-to-cook) and the Netherlands (ready-to-eat) to expand capacity and efficiency.

• Proposed dividend of SEK 2.50 per share, up from SEK 2.30, reflecting improved profitability and a 9% increase year-over-year.

Financial highlights

• Net sales for Q4 2024: MSEK 3,170 (+5% year-over-year); full year: MSEK 13,024.

• EBIT: MSEK 107 (Q4 2024), up from 105 MSEK; full-year EBIT: MSEK 509 (up 11%).

• Ready-to-cook: Q4 net sales up 5% to MSEK 2,399; EBIT down 19% to MSEK 63 due to Lithuanian start-up costs.

• Ready-to-eat: Q4 net sales up 7% to MSEK 644; EBIT up 82% to MSEK 40, margin 6.2%.

• Net interest-bearing debt increased by MSEK 239–240 in Q4, mainly due to acquisitions.

Outlook and guidance

• 2027 targets: 5%-7% net sales growth, EBIT margin above 6%, EBIT per kilo target of SEK 3.

• 2025 investments estimated at MSEK 550, mainly for capacity expansion and production streamlining.

• Effective tax rate guided at 20% for 2025; dividend to be paid in two instalments.

• Market growth in ready-to-eat expected to materialize in 2025 after stagnation post-Covid and inflation.

• Gradual year-on-year improvement expected in EBIT per kilo, with some back-loading due to ramp-up costs in new facilities.