Seafire (SEAF) Q4 2024 earnings summary

Executive summary

• Net sales declined 7% in Q4 2024 to SEK 211 million, with full-year sales down 10% to SEK 905 million, reflecting weak demand and organic contraction.

• Adjusted EBITA improved to SEK 6 million in Q4 (margin 3%) and SEK 42 million for the year (margin 5%), driven by cost savings despite lower volumes.

• Goodwill impairments of SEK 87 million in Q4 and SEK 122 million for the year significantly impacted reported EBIT.

• Cash flow from operating activities was SEK 3 million in Q4 and SEK 45 million for the year, both affected by tax deferral repayments.

• The Board proposes no dividend for 2024.

Financial highlights

• Q4 EBITA was SEK 1 million (margin 0%), down from SEK 17 million (margin 7%) in Q4 2023, due to prior year remeasurement gains.

• Full-year EBITA was SEK 42 million (margin 5%), down from SEK 81 million (margin 8%) in 2023.

• Operating profit (EBIT) was SEK -92 million in Q4 and SEK -105 million for the year, both heavily impacted by goodwill impairments.

• Basic and diluted EPS were SEK -2.26 in Q4 and SEK -3.12 for the year.

• Net debt/adjusted EBITDA pro forma R12 increased to 3.0x from 2.2x year-over-year.

Outlook and guidance

• Management expects markets to have stabilized at a low level, with early signs of improvement, especially in consumer-exposed subsidiaries.

• Focus for 2025 will be on organic profit growth, cash flow, and leveraging existing infrastructure for scalable growth.

• Underlying indicators suggest potential strengthening in Q2 and Q3 2025.