We continue to build a stronger MEKO
October 1-December 31, 2024
- Net sales increased 6 percent to SEK 4,650 M (4,373), where most of the increase was attributable to the acquisition of Elit Polska. Organic growth was 0 percent. Net sales were negatively impacted by fewer workdays.
- EBIT increased to SEK 127 M (68) and the EBIT margin to 2.7 percent (1.5). EBIT for the quarter was impacted by items affecting comparability of SEK -38 M (-82).
- Adjusted EBIT increased to SEK 189 M (175) and the adjusted EBIT margin to 4.0 percent (3.9).
- Earnings per share before and after dilution amounted to SEK -0.07 (-0.07).
- Cash flow from operating activities increased to SEK 213 M (139).
January 1-December 31, 2024
- Net sales increased 8 percent to SEK 18,046 M (16,762), where 3 percent was attributable to the acquisition of Elit Polska. Organic growth was 4 percent.
- EBIT increased to SEK 902 M (872) and the EBIT margin was 4.9 percent (5.0). EBIT for the year was impacted by items affecting comparability of SEK -169 M (10), was positively impacted by the unwinding of negative goodwill of SEK 176 M (-) linked to the acquisition of Elit Polska and was negatively impacted by the impairment of intangible assets pertaining to the Poland/the Baltics business area of SEK -101 M (-).
- Adjusted EBIT increased to SEK 1,091 M (963) and the adjusted EBIT margin to 5.9 percent (5.6).
- Earnings per share before and after dilution increased to SEK 7.74 (7.50).
- Cash flow from operating activities increased to SEK 1,376 M (1,252).
- Net debt in relation to EBITDA1) decreased to a multiple of 2.6 compared with 2.7 at the beginning of the year.
- The Board of Directors proposes a dividend of SEK 3.90 (3.70) to be paid in two installments, SEK 1.95 in May and SEK 1.95 in November.
Significant events after the end of the year
- No significant events occurred.
CEO comments:
We continue to build a stronger MEKO
2024 was a year during which we continued our planned building of a stronger MEKO. Profitability improved with increased growth and we safeguarded our solid financial position. We are pleased that the Board is in a position to propose a dividend of SEK 3.90 (3.70) per share. We are now fully focused on 2025, which will be an intense year during which we are implementing important steps to further strengthen our position.
In November 2023, we announced our long-term initiative to create a stronger and more profitable company: "Building a stronger MEKO" - an initiative that is still ongoing. Our goal is clear: We will realize greater cost savings, increased efficiencies, and more attractive procurement agreements. Additionally, we will implement a new business system across the group to, among other things, create a broader product offering and long-term procurement synergies.
We are starting these efforts from a position of strength. MEKO is the market leader in northern Europe and always strives to be the most comprehensive partner for everyone who drives, repairs and maintains vehicles. We are supported by a stable business concept adapted to all types of vehicles - irrespective of whether they are powered by electricity or fossil fuel.
Work that generates results
Summarizing 2024 confirms that this work has borne fruit:
- Milestone for adjusted EBIT. We posted our highest adjusted EBIT to date, exceeding SEK 1 billion with a healthy margin. This represented an increase of slightly more than 13 percent compared with 2023.
- Strong financial position. Our debt/equity ratio of 2.6 is a level that is well inside our target range.
- Strong growth. As planned, we have prioritized profitability over growth, and are still growing revenue at a steady pace. In parallel, we have reduced costs as a share of sales and maintained our gross margins.
- Dividend level increased. The performance means that the Board can propose a dividend of SEK 3.90 (3.70) per share.
Adjusted EBIT has been improved despite the significant costs we incurred for integrating the company Elit Polska, which was acquired during the year and represents a milestone in our geographical expansion.
Varied market conditions
Looking back at the fourth quarter in isolation, our business areas experienced varied market conditions. Both the quarter and December had fewer workdays compared to last year, with the side effect of lower activity in the latter part of this month. In summary, market conditions were favorable in the Sweden/Norway business area, while somewhat more cautious in Denmark. Fierce competition prevailed in Poland/the Baltics and the economy remained weak in Finland. Overall, year-on-year organic growth was flat in the fourth quarter. For the full-year 2024, organic growth was 4 percent.
Continued efficiency improvements
Operating profit for the fourth quarter strengthened slightly year-on-year, mainly due to robust efficiency improvements in the Sweden/Norway business area and the continued strong performance of Sørensen og Balchen (Norway). We continue to streamline and optimize operations in Finland, where a number of activities have already been completed or are ongoing as planned. At the same time, additional efficiency improvements are expected in Denmark when the move to the new central warehouse is completed at the end of February.
Intensive 2025 at a controlled high pace
As we indicated earlier, we intend to maintain a high pace in 2025, with a number of major projects being completed in parallel, including:
- Norway: We are commissioning our new, automated central warehouse outside Oslo, which will increase efficiency and service levels for our customers.
- Denmark: We are opening our new, high-tech central warehouse and training center in Rørup outside Odense.
- Finland: We are commissioning our refurbished and automated central warehouse in Helsinki.
- Poland: We are relocating the Warsaw warehouse to a facility that is nearly twice as large to enable continued growth in this important market. In parallel, we are focusing on the continued integration of Elit Polska and the implementation of our new business system (ERP) in Poland, which will be the first market in the group to adopt it.
All of these projects are proceeding as planned and we are well prepared for the next phases. We are fully focused on making 2025 another year during which MEKO improves its profitability - and strengthens its position as the most comprehensive partner for everyone who drives, repairs and maintains vehicles in northern Europe.
Pehr Oscarson
President and CEO
This information is information that MEKO 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 2025-02-13 07:30 CET.
