Nokian Tyres plc Financial Statement Release 2024, February 4, 2025 at 1:00 p.m. EET
This release is a summary of Nokian Tyres' Financial Statement Release 2024. The complete report is attached to this release. It is also available on the company's website at company.nokiantyres.com/investors.
October-December 2024
- Net sales were EUR 415.0 million (October-December 2023: 368.0) and increased by 12.8%. With comparable currencies, net sales increased by 13.1%.
- Segments operating profit was EUR 35.9 million (44.5). Operating profit was EUR 15.4 million (33.1). EUR -20.5 million (-11.3) was booked as non-IFRS exclusions.
- Earnings per share were EUR 0.04 (0.19).
- Cash flow from operating activities was EUR 314.8 million (297.6).
January-December 2024
- Net sales were EUR 1,289.8 million (January-December 2023: 1,173.6) and increased by 9.9%. With comparable currencies, net sales increased by 10.6%.
- Segments operating profit was EUR 71.4 million (65.1). Operating profit was EUR 1.8 million (32.1). EUR -69.6 million (-33.0) was booked as non-IFRS exclusions.
- During the first half of the year, there was negative impact coming from the Red Sea crisis and the political strikes in Finland, causing loss of production, delays in shipments, and increased logistics costs.
- Earnings per share were EUR -0.17 (-2.36).
- Cash flow from operating activities was EUR 77.4 million (82.4).
- The Romanian factory is progressing on schedule and within budget. In August, the European Commission approved a EUR 99.5 million Romanian state aid measure to be paid to support the establishment of the Romanian factory.
- In July, Paolo Pompei was appointed Nokian Tyres' President and CEO, effective as of January 1, 2025. Pompei succeeds the President and CEO Jukka Moisio, who retired from the company in the end of 2024.
- The Board of Directors proposes a dividend of EUR 0.25 per share for the financial year 2024 to be paid in May (dividend for the financial year 2023: 0.55).
Guidance for 2025
In 2025, Nokian Tyres' net sales are expected to grow and segments operating profit as a percentage of net sales to improve compared to the previous year.
Assumptions for 2025
Tire demand in Nokian Tyres' markets is expected to remain at the previous year's level in 2025. Development of global economy and geopolitical uncertainties may cause volatility to the company's business environment.
Nokian Tyres' sales growth is based on increasing capacity in the Romanian and US factories as well as good availability of finished goods inventories.
Paolo Pompei, President and CEO:
"In 2024, we continued our journey to rebuild Nokian Tyres. We advanced our growth strategy through strategic investments to increase capacity and strong innovation efforts to launch new products. Key milestones included opening the world's first full-scale zero CO2 emission tire factory in Romania, which is getting ready for tire deliveries, completing the investment phase at our US factory, and introducing new sustainable materials to our tires.
The net sales of Passenger Car Tyres increased in 2024 driven by a robust growth in Central Europe. In the Nordic countries, we continue in a strong position while further improvement is required in our North American business where the fourth quarter was particularly soft. Heavy Tyres performed well in a weak OE market.
In 2025, we continue to focus on growth, driven by new innovative products and an even greater focus on generating value for consumers. At the same time, we will further sharpen our operations to increase productivity and efficiency while maintaining strict cost control. In recent years, we have invested significantly in advanced manufacturing technologies. By leveraging these assets and our strong innovation capabilities, we continue to deliver safe, sustainably manufactured and high-performing tires that meet the evolving consumer needs. The recent announcements of trade tariffs are causing uncertainty. We are analyzing the possible impacts of the tariffs and creating a strategy how to address them.
I am excited and honored to lead Nokian Tyres together with our talented personnel into our next phase of development."
Key figures
EUR million | 10-12/2024 | 10-12/2023 | 2024 | 2023 |
Net sales | 415.0 | 368.0 | 1,289.8 | 1,173.6 |
Net sales change, % | 12.8% | 1.7% | 9.9% | -13.1% |
Net sales change in comparable currencies, % | 13.1% | 6.3% | 10.6% | -9.2% |
Operating profit | 15.4 | 33.1 | 1.8 | 32.1 |
Operating profit, % | 3.7% | 9.0% | 0.1% | 2.7% |
Result before tax | 4.4 | 27.1 | -31.5 | 14.2 |
Result for the period | 6.0 | 26.2 | -22.8 | -325.5 |
EPS, EUR | 0.04 | 0.19 | -0.17 | -2.36 |
Segments EBITDA | 67.1 | 71.9 | 185.2 | 170.5 |
Segments EBITDA, % | 16.2% | 19.5% | 14.4% | 14.5% |
Segments operating profit | 35.9 | 44.5 | 71.4 | 65.1 |
Segments operating profit, % | 8.7% | 12.1% | 5.5% | 5.5% |
Segments ROCE, % | 3.9% | 4.0% | ||
Equity ratio, % | 52.5% | 58.0% | ||
Gearing, % | 48.2% | 16.6% | ||
Interest-bearing net debt | 613.1 | 223.6 | ||
Capital expenditure | 90.1 | 95.5 | 350.1 | 252.1 |
Cash flow from operating activities | 314.8 | 297.6 | 77.4 | 82.4 |
In addition to IFRS figures, Nokian Tyres publishes alternative non-IFRS segments figures, which exclude the ramp-up of the US factory, the preparations for the Romanian factory ramp-up and other possible items that are not indicative of the Group's underlying business performance.
Following the completion of the Russia exit in March 2023, Nokian Tyres has excluded Russia from its IFRS and non-IFRS segments figures as of January 1, 2023.
BUSINESS UNIT REVIEWS
Passenger Car Tyres
EUR million | 10-12/2024 | 10-12/2023 | 2024 | 2023 |
Net sales | 238.2 | 197.9 | 779.9 | 653.4 |
Net sales change, % | 20.3% | 6.1% | 19.4% | -19.4% |
Net sales change in comparable currencies, % | 20.7% | 10.6% | 20.2% | -15.8% |
Operating profit | -6.6 | 11.0 | -15.6 | 4.1 |
Operating profit, % | -2.8% | 5.6% | -2.0% | 0.6% |
Segment operating profit | 13.6 | 22.0 | 52.2 | 36.7 |
Segment operating profit, % | 5.7% | 11.1% | 6.7% | 5.6% |
Heavy Tyres
EUR million | 10-12/2024 | 10-12/2023 | 2024 | 2023 |
Net sales | 61.8 | 61.8 | 235.1 | 257.1 |
Net sales change, % | 0.0% | -4.4% | -8.6% | -5.1% |
Net sales change in comparable currencies, % | 0.4% | -2.6% | -8.0% | -3.4% |
Operating profit | 8.5 | 7.3 | 30.0 | 32.8 |
Operating profit, % | 13.8% | 11.8% | 12.8% | 12.8% |
Segment operating profit | 8.5 | 7.3 | 30.0 | 32.8 |
Segment operating profit, % | 13.8% | 11.8% | 12.8% | 12.8% |
Vianor, own operations
EUR million | 10-12/2024 | 10-12/2023 | 2024 | 2023 |
Net sales | 134.1 | 126.0 | 354.9 | 344.0 |
Net sales change, % | 6.4% | -2.6% | 3.2% | -5.0% |
Net sales change in comparable currencies, % | 6.7% | 3.7% | 3.6% | 1.8% |
Operating profit | 11.2 | 12.1 | -3.8 | 3.4 |
Operating profit, % | 8.3% | 9.6% | -1.1% | 1.0% |
Segment operating profit | 11.2 | 12.1 | -3.8 | 3.4 |
Segment operating profit, % | 8.3% | 9.6% | -1.1% | 1.0% |
Number of own service centers at period end | 174 | 174 |
CONFERENCE CALL
A conference call for investors, analysts and media will be held on the publishing day at 2:00 p.m. EET. In the call, President and CEO Paolo Pompei and CFO Niko Haavisto will present the financial results. Participants can listen to the call online at https://nokiantyres.events.inderes.com/q4-2024.
To ask questions, please join the conference call by registering at https://palvelu.flik.fi/teleconference/?id=50052205. Phone numbers and a conference ID to access the conference call will be provided upon registration.
A recording of the conference call will be available on the company's website for 12 months after the call.
FINANCIAL REPORTING
Nokian Tyres Annual Report 2024 will be published in Finnish and English in the beginning of March 2025.
Interim Report January-March 2025: May 6, 2025
THE ANNUAL GENERAL MEETING 2025
The Annual General Meeting of Nokian Tyres plc is tentatively scheduled for Wednesday, May 7, 2025.
Releases and company information are available at company.nokiantyres.com/investors/.
Further information:
Niko Haavisto, CFO, tel: +358 10 401 7819
Päivi Antola, SVP, Communications, Investor Relations and Brand, tel: +358 10 401 7327
Paolo Pompei, President and CEO, tel: +358 10 401 7742
Nokian Tyres' purpose is to make the world safer by reinventing tires, and how they are made, over and over again - a safer place to drive, work and live now and for generations to come. Inspired by our northern heritage, we develop and manufacture premium tires for passenger cars, trucks and heavy machinery with sustainability at the heart of all our operations. Our Vianor chain provides tire and car services. We are some 3,800 people with net sales of EUR 1.3 billion in 2024, and together we lead the journey to smarter driving for people and for businesses. Nokian Tyres is listed on Nasdaq Helsinki. Further information: company.nokiantyres.com
