Alla tekoälyn yhteenveto Q4:
- Revenue Decline: Overall sales declined by 17% in 2024, primarily due to challenges in construction-related businesses and industrial exposure.
- Operational EBIT: Achieved EUR6.8 million, representing 5.1% of sales.
- Gross Margin Improvement: Increased from 28% to 30% in 2024.
- Operational Cash Flow: Over EUR20 million generated in the last two years, with EUR7 million in Q4 2024.
- Leverage Ratio: Ended 2024 at 2.8x net debt to operational EBIT.
- Electronics Business Performance: Sales growth of 31% in Q4 2024, with an EBIT margin of 8.5%.
- Technical Trade Performance: Sales declined by 11% in Q4 2024, with a 4.5% EBIT margin.
- Liquidity: EUR24.5 million at year-end 2024, including EUR9.7 million in cash.
- Order Book: Higher levels going into 2025 compared to the previous year.
Positive Points
- Managed to secure and defend profitability through pricing actions and reducing fixed costs, achieving an operational EBIT of EUR6.8 million, which is 5.1% in relation to sales.
- The company generated a strong operative cash flow of over EUR20 million in the last two years, with EUR7 million in the last quarter of 2024.
- The electronics business area showed improved profitability, with a strong performance from SSN and Milken, contributing to a 31% sales growth in Q4 compared to the previous year.
- Boreo Oyj successfully managed working capital, bringing it down to EUR25 million by the end of 2024, which supported strong operational cash flows.
- The company extended its credit facilities by one year and postponed loan repayments, maintaining a liquidity of EUR24.5 million at the end of 2024.
Negative Points
- Boreo Oyj experienced a 17% decline in sales throughout 2024, primarily due to challenges in construction-related businesses and industrial exposure.
- The company’s financial standing is not where it wants to be, with leverage elevated at 2.8 times net debt to operational EBIT.
- Technical trade business area faced a challenging operating environment, with an 11% sales decline in Q4 compared to the previous year.
- The Putzmeister business in Finland continued to suffer from a tough market, with uncertain demand outlook going forward.
- Despite improvements, the return on capital employed remains low at 8%, and leverage is higher than desired, indicating financial challenges.
Q & A Highlights
Q: Can you give some indication of the net impact from the cost cut actions and additional spending when thinking of 2025 compared to the end of 2024? A: Kari Nerg, CEO: We have made some recruitments and investments, particularly in Delphin Technologies and the machinery’s auxiliary power business. Going into 2025, we expect an increase in fixed costs due to inflation and provisions for improved performance. However, if market conditions do not support us as expected, we have the flexibility to adjust costs downward.
Q: Do you foresee the significantly better development of SSN continuing this year? What does their order book look like? A: Kari Nerg, CEO: The outlook for SSN is positive, especially in Poland and Finland, though more challenging in the US and Sweden. We expect SSN to operate at levels similar to 2022 and 2021, with gradual performance improvement throughout the year.
Q: What kind of working capital buildup do you expect in the near future? A: Kari Nerg, CEO: We anticipate a couple of million EUR in trade working capital swings, depending on sales activity and timing of larger deliveries. We aim to maintain a tight management of working capital, with some expected buildup at the start of the year.
Q: Can you provide an update on the timing of Putzmeister deliveries in Sweden? A: Kari Nerg, CEO: We expect the first deliveries to occur during Q1, with significant batches scheduled for Q2 and Q3. However, supply chain challenges, particularly with chassis, may affect the timing.
Q: How did the changes in debt repayment schedules affect your debt conditions? A: Jesse Petaja, CFO: The changes did not affect our current debt terms, and there are no material effects on costs. Any related costs are one-time impacts.