Soft markets lead to profit erosion, ROCE stable
FOURTH QUARTER OF 2024
- Consolidated net sales decreased with -12 percent to SEK 925 m (1,048), of which acquisitions 0 percent, currency effects -0 percent and organic development -12 percent
- Net sales in Product & Solutions amounted to SEK 662 m (718) and in Installation Services to SEK 290 m (364)
- Gross profit decreased to SEK 224 m (257) Gross margin decreased to 24.2% (24.6%)
- EBITDA decreased to SEK 71 m (89), EBITDA margin decreased to 7.6% (8.5%)
- Operating profit (EBIT) decreased to SEK 28 m (47), EBIT margin decreased to 3.1% (4.5%)
- ROCE amounted to 10.1 percent (10.2)
- Cash flow from operating activities amounted to SEK 144 m (255)
- Earnings per share before and after dilution were SEK 0.59 (1.86) and SEK 0.58 (1.85), respectively
JANUARY - DECEMBER 2024
- Consolidated net sales decreased by -8 percent to SEK 4,091 m (4,463), of which acquisitions 1 percent, currency -1 percent and organic development -8 percent
- Net sales in Product & Solutions amounted to SEK 3,057 m (3,279) and in Installation Services to SEK 1,176 m (1,352)
- Gross profit decreased to SEK 1,078 m (1,114), Gross margin increased to 26.4% (25.0%)
- EBITDA decreased to SEK 432 m (464), EBITDA margin increased to 10.6% (10.4%)
- Operating profit (EBIT) decreased to SEK 278 m (293), EBIT margin increased to 6.8% (6.6%)
- Cash flow from operating activities amounted to SEK 288 m (503)
- Earnings per share before and after dilution were SEK 7.12 (8.85) and SEK 7.10 (8.80), respectively
MESSAGE FROM THE CEO
Soft markets lead to profit erosion, ROCE stable
Consolidated net sales in the fourth quarter decreased to SEK 925 million from SEK 1,048 million last year, all related to organic development, no impact from acquisitions or currency. Organic development was -8 percent in Products & Solutions and -20 percent in Installation Services.
EBIT for the fourth quarter decreased to SEK 28 million, compared to SEK 47 million last year. Lower operating profit within Products & Solutions is mainly explained by non-recurring costs within the Taasinge Group. In Installation Services, lower operating profit is explained by lower sales and margins in the Finnish installation business.
ROCE stable at 10.1 percent (10.2). Cash flow from operating activities amounted to SEK 144 M (255), the decrease being due to the exceptionally large reduction of working capital last year. Nevertheless a reduction in Net debt versus last year has been achieved.
Our expectation for commercial new build and renovation demand remains on current levels for the beginning of this year. Residential new build will remain depressed in the near future with the exception of Denmark. Later in 2025 we expect more
PRODUCTS AND SOLUTIONS
Net Sales decreased by -8 percent (-5) to SEK 662 M (718), all due to organic impact.
The bitumen-based waterproofing business in Denmark and Norway had a net sales that developed slightly positively, while the development in Sweden was slightly negative and Finland had a larger negative sales development.
SealEco, our synthetic rubber waterproofing business, had a slight negative sales, however with improved margins and operating result.
In our prefabricated wood element operations in Denmark and Norway, additional programs have been implemented to improve the performance of the units. One factory in Denmark was closed during the quarter.
Sales development of our green infrastructure businesses, sold under the brand Veg Tech, was negative in all markets, which also led to a negative development in the operating profit.
INSTALLATION SERVICES
Net sales decreased by -20 percent (12) to SEK 290 M (364) driven by a depressed market environment in Finland which represents the largest part of this segment. The impact from acquisitions was 0 percent (9), currency translation effects were -0 percent (4), organic development was -20 percent (-1).
The lower sales in Finland led to weaker operating margins and a weaker operating profit.
In Norway we had a negative sales development while operational result improved.
The entities in Sweden had a positive operating result in the quarter.
In Denmark, our franchise companies reported a strong quarter with unchanged operating profit.
POSITIONED FOR EXPANSION
We continue to be well positioned with a solid balance sheet and actively monitor acquisition opportunities.
Helsingborg, 4 February 2025
Martin Ellis,
President and CEO
ANNUAL GENERAL MEETING 2025 AND DIVIDEND PROPOSAL
The AGM of Nordic Waterproofing Holding AB will be held on 29 April 2025.
The Board of Directors will propose the Annual General Meeting to resolve to pay a cash dividend of SEK 4.00 per share, totaling SEK 96 m. This represents ca 57 percent of the net profit in 2024.
NOMINATION COMMITTEE FOR THE 2025 ANNUAL MEETING
Information about the nomination committee is published on the Group's website: www.nordicwaterproofing.com/en/nomination-committee.
ANNUAL REPORT 2024
The 2024 Annual Report will be available on Nordic Waterproofing's website and at the company's headquarters from 28 March 2025.
CONFERENCE CALL
A conference call for investors, analysts and media will be held today, 4 February 2025, at 10:00 am CET and can be joined online on https://events.teams.microsoft.com/event. Presentation materials will be available on https://www.nordicwaterproofing.com one hour before the call.
To participate from computer, use link above or via MS Teams with meeting id 344 239 011 306 and passcode: bU6HW6hr.
To participate via phone, please use conference id 499 914 067# on any of below numbers:
From Sweden: +46 8 502 428 90
From Denmark: +45 32 72 66 61
From United Kingdom: +44 20 7660 8326
From Finland: +358 9 85 626 548
For further information, please contact:
Palle Schrewelius, CFO and Investor Relations
Telephone: +46 707 82 79 58
E-mail: pos@nordicwaterproofing.com
Nordic Waterproofing in brief
Nordic Waterproofing is one of the leading providers in the waterproofing market in northern Europe. The Company provides high-quality products and solutions for waterproofing in Sweden, Finland, Denmark, Norway, Belgium, the Netherlands, Poland, the United Kingdom and Germany. Nordic Waterproofing also provides installation services through wholly-owned subsidiaries or part-owned companies in Sweden, Finland, Denmark and Norway. The Company markets its products and solutions under several brands, all with an extensive heritage, most of which are among the most established and well-recognized brands in their respective markets, such as Mataki, Trebolit, Phønix Tag Materialer, Kerabit, Byggpartner, SealEco, Distri Pond, Taasinge Elementer, RVT and Veg Tech. Nordic Waterproofing Holding AB is listed in the Mid Cap segment on Nasdaq Stockholm with the stock ticker NWG.
Additional information about Nordic Waterproofing is available at www.nordicwaterproofing.com
This information is information that Nordic Waterproofing Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-04 08:00 CET.
