17.2.2025 09:30:00 EET | Wulff-Yhtiöt Oyj | Financial Statement Release
FINANCIAL STATEMENTS RELEASE | FEBRUARY 17, 2025 AT 9.30 A.M.
This is a summary of Wulff Group Plc's Financial Statements Release January-December 2024. The complete report is attached to this stock exchange release as a pdf-file. The report is also available at the website www.wulff.fi
OCTOBER-DECEMBER 2024 BRIEFLY
- Net sales totalled EUR 27.9 million (22.9), increasing by 21.7%
- EBITDA was EUR 1.4 million (1.6), and comparable EBITDA was EUR 1.4 million (1.6)
- Operating profit (EBIT) was EUR 0.8 million (1.1), and comparable operating profit (EBIT) was EUR 0.8 million (1.2). Operating margin was 2.9% (4.8) and comparable operating margin was 2.9% (5.1)
- Earnings per share (EPS) were EUR 0.04 (0.12) and comparable earnings per share (EPS) were EUR 0.04 (0.13)
- The equity ratio was 41.3% (45.5)
YEAR 2024 BRIEFLY
- Net sales totalled EUR 102.8 million (93.8), increasing by 9.6%
- EBITDA was EUR 5.4 million (5.1), and comparable EBITDA was EUR 5.6 million (5.5)
- Operating profit (EBIT) was EUR 3.2 million (3.2), and comparable operating profit (EBIT) was EUR 3.3 million (3.5). Operating margin was 3.1% (3.4) and comparable operating margin was 3.2% (3.8)
- Earnings per share (EPS) were EUR 0.26 (0.31) and comparable earnings per share (EPS) were EUR 0.29 (0.36)
- The Board of Directors proposes to the Annual General Meeting to be held on April 3, 2025 that a dividend of EUR 0.16 per share (0.15) will be paid
FINANCIAL GUIDANCE 2025
Wulff estimates that net sales will increase, and that the comparable operating profit will remain at a good level in 2025.
The guidance is based on management's assessment of the market and business situation in Finland and Scandinavia. In particular, service businesses are expected to grow compared to 2024. Key uncertainties affecting the outlook are the general economic and employment situation, the development of inflation and interest rates as well as geopolitics: crises, tensions, protectionism and d tightened competition between superpowers.
KEY FIGURES
EUR 1 000 | Q4 2024 | Q4 2023 | Q1-Q4 2024 | Q1-Q4 2023 |
Net sales | 27 904 | 22 934 | 102 815 | 93 782 |
Change in net sales, % | 21.7% | -17.1% | 9.6% | -8.2% |
EBITDA | 1 410 | 1 581 | 5 416 | 5 110 |
EBITDA margin, % | 5.1% | 6.9% | 5.3% | 5.4% |
Comparable EBITDA | 1 410 | 1 649 | 5 577 | 5 470 |
Comparable EBITDA margin, % | 5.1% | 7.2% | 5.4% | 5.8% |
Operating profit/loss | 807 | 1 093 | 3 180 | 3 170 |
Operating profit/loss margin, % | 2.9% | 4.8% | 3.1% | 3.4% |
Comparable operating profit/loss | 807 | 1 161 | 3 340 | 3 530 |
Comparable operating profit/loss margin, % | 2.9% | 5.1% | 3.2% | 3.8% |
Comparable profit/loss before taxes | 543 | 870 | 2 270 | 2 492 |
Comparable profit/loss before taxes margin, % | 1.9% | 3.8% | 2.2% | 2.7% |
Net profit/loss for the period attributable to equity holders of the parent company | 295 | 809 | 1 778 | 2 087 |
Net profit/loss for the period, % | 1.1% | 3.5% | 1.7% | 2.2% |
Comparable net profit/loss for the period attributable to equity | 295 | 877 | 1 939 | 2 446 |
Comparable net profit/loss for the period, % | 1.1% | 3.8% | 1.9% | 2.6% |
Earnings per share, EUR (diluted = non-diluted) | 0.04 | 0.12 | 0.26 | 0.31 |
Comparable earnings per share, EUR (diluted = non-diluted) | 0.04 | 0.13 | 0.29 | 0.36 |
Cash flow from operating activities | 2 278 | 4 198 | 4 114 | 4 560 |
Return on equity (ROE), % | 1.9% | 3.8% | 8.2% | 9.9% |
Return on investment (ROI), % | 2.3% | 3.3% | 9.0% | 9.0% |
Equity-to-assets ratio at the end of period, % | 41.3% | 45.5% | 41.3% | 45.5% |
Debt-to-equity ratio at the end of period | 65.6% | 52.5% | 65.6% | 52.5% |
Investments in non-current assets | 385 | 565 | 1 628 | 1 649 |
Personnel on average during the period | 281 | 241 | 271 | 262 |
Temporary employees on average in person-years of work | 361 | - | 256 | - |
WULFF GROUP PLC'S CEO ELINA RAHKONEN
The year 2024 ended at Wulff with the highest net sales figure in our history: EUR 102.8 million. The comparable operating profit margin was 3.2% (3.8). The group's net sales for October-December 2024 increased by 21.7%. We succeeded in implementing our growth strategy in a more challenging operating environment than before. I am very happy about the profitable growth in the Worklife Services segment: the staffing business of Wulff Works, which started in January 2024, grew wonderfully in line with expectations and its share of the group's net sales is already above 10%. Wulff Accountings' net sales and operating profit more than doubled. The profitability of accounting services is at a good level and the development is stable.
Our service operations help companies grow sustainably and operate ethically. They also bring flexibility and adaptability to companies' operations. With Wulff Works and Wulff Accounting, it is easy for our client companies to grow when they can use their own resources efficiently.
In 2025, we have good opportunities to improve the profitability of the entire Group. For example, the initial efforts related to starting the operation of Wulff Works have mostly been made during 2024. In addition, determined and value-driven work is needed to enable the best customer experience. As a strong team of sales and experts, we at Wulff are ready for this.
Economic and geopolitical uncertainty was felt in the demand for the Products for Work Environments segment in Finland and Scandinavia, and the segment's net sales in 2024 decreased by 6.2%, with the Scandinavian Expert Sales sold in the fall of 2023 removed from the comparison figure. Wulff's consolidation and efficiency measures for workplace businesses have contributed to the reduction of the segment's fixed costs in Finland, which has balanced the decline in net sales. The goal is to strengthen profitability during 2025 by developing even more efficient operating models and strengthening competitiveness. The key focus areas are improving the operational efficiency of the logistics chain and refining the selection and making it more responsible.
Promoting sustainable development and responsible operations is an important part of our strategy and values. Our mission, a better world one job at a time, encapsulates the finesse of a sustainable business strategy: more responsible choices are an opportunity to positively influence the well-being of the environment and people, while at the same time succeeding as a company and operating commercially profitably. More and more of our customers choose as their partner a company that operates ethically and sustainably - compatible with their own values.
Our strong development and strategy is also indicated by the fact that we are proposing an increasing dividend for the seventh time in a row. For this, I would like to thank all our customers, personnel, partners and shareholders who have made growth possible. Thank you for trusting Wulff.
GROUP'S NET SALES AND RESULT PERFORMANCE
In October-December 2024 net sales increased by 21.7% (-17.1) from the previous year and totalled EUR 27.9 million (22.9). In January-December 2024 net sales increased by 9.6% (-8.2) and totalled EUR 102.8 million (93.8).
Worklife Services segment's net sales increased by 339.3% in October-December, and 214.1% in January-December especially due to the new staff leasing business' strong organic growth - the business was launched in the beginning of the year, - and the expansion of Wulff's accounting services business. The acquisitions of accounting companies during the financial year increased the net sales in January-December by EUR 1.9 million.
Products for Work Environments segment's net sales decreased by 5.8% in October-December, and by 6.2% in January-December, excluding the Scandinavian Expertise Sales sold in autumn 2023 from the comparison. Net sales decreased both in Finland and in Scandinavia.
The gross margin amounted to EUR 8.1 million (7.4) being 29.2% (32.4) of net sales in October-December 2024, and EUR 30.2 million (28.7) being 29.4% (30.6) of net sales in January-December 2024. There were no disturbances in the availability of products during the reporting period.
In October-December 2024 employee benefit expenses amounted to EUR 4.6 million (4.0) being 16.6% (17.3) of net sales. In January-December 2024 employee benefit expenses amounted to EUR 17.3 million (16.5) being 16.8% (17.6) of net sales. The decrease in personnel costs relative to net sales during the reporting period is related to the organizational reforms implemented both in early spring and earlier. Wulff's change negotiations during the reporting period resulted in a one-time expense of EUR 0.2 million, which has been removed from the comparable result.
Other operating expenses amounted to EUR 2.2 million (1.9) in the last quarter of 2024 being 7.8% (8.3) of net sales. In January-December other operating expenses amounted to EUR 7.7 million (7.3) being 7.5% (7.8) of net sales. The change in other operating expenses in relation to net sales comes from the growth in the Worklife Services segment.
In October-December 2024 EBITDA amounted EUR 1.4 million (1.6), or 5.1% (6.9) of net sales and comparable EBITDA amounted to EUR 1.4 million (1.6), or 5.1% (7.2) of net sales. In January-December EBITDA amounted EUR 5.4 million (5.1), or 5.3% (5.4) of net sales and comparable EBITDA amounted to EUR 5.6 million (5.5), or 5.4% (5.8) of net sales.
Operating profit (EBIT) amounted to EUR 0.8 million (1.1), or 2.9% (4.8) of net sales in October-December 2024 and comparable operating profit amounted to EUR 0.8 million (1.2), or 2.9% (5.1) of net sales. Operating profit (EBIT) amounted to EUR 3.2 milllion (3.2), or 3.1% (3.4) of net sales in January-December 2024 and comparable operating profit amounted to EUR 3.3 milllion (3.5), or 3.2% (3.8) of net sales.
In the last quarter financial income and expenses totalled (net) EUR -0.3 million (-0.3). In January-December 2024, the financial income and expenses totalled (net) EUR -1.1 million (-1.0), including interest expenses of EUR -1.0 million (-0.9), and mainly currency-related other financial items (net) totalled EUR -0.1 million (-0.1).
In October-December 2024 the result before taxes was EUR 0.5 million (0.8), and the comparable result before taxes was EUR 0.5 million (0.9). In January-December 2024 the result before taxes was EUR 2.1 million (2.1), and the comparable result before taxes was EUR 2.3 million (2.5).
In the last quarter of 2024 net profit attributable to equity holders of the parent company was EUR 0.3 million (0.8) and comparable net profit was EUR 0.3 million (0.9). The net profit attributable to equity holders of the parent company was EUR 1.8 million (2.1) and comparable net profit was EUR 1.9 million (2.4) in January-December.
Earnings per share (EPS) were EUR 0.04 (0.12) and comparable earnings per share (EPS) were 0.04 (0.13) in the last quarter of 2024. Earnings per share (EPS) were EUR 0.26 (0.31) and comparable earnings per share (EPS) were 0.29 (0.36) in January-December 2024.
BOARD OF DIRECTORS' PROPOSAL FOR THE DISTRIBUTION OF PROFIT
The Group's parent company Wulff Group Plc's distributable funds totalled EUR 4.0 million (1.5). The Group's net result attributable to the owners of the parent company for the financial year was EUR 1.8 million (2.1), or EUR 0.26 per share (0.31). The Board of Directors proposes to the Annual General Meeting to be held on April 3, 2025, that a dividend of EUR 0.16 per share (0.15) be paid in two instalments 0.08 during the second quarter of 2025 and 0.08 during the last quarter of 2025, for the financial year 2024, totalling EUR 1.1 million, and the remaining distributable funds to be transferred in retained earnings in the shareholders' equity. The effective dividend yield of the proposed dividend is 5.2 percent (calculated at the 31.12.2024 share price, which was EUR 3.07/share).
SUBSEQUENT EVENTS
On January 10, 2025, Wulff announced the purchase of Hämeen TiliDiili Oy. (Press release)
On February 13, 2025, Wulff announced the purchase of 70% of Convido Ab Oy's shares. (Stock exchange release)
In Espoo on February 17, 2025
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Elina Rahkonen
tel. +358 40 647 1444
e-mail: elina.rahkonen@wulff.fi
DISTRIBUTION
Nasdaq Helsinki Oy
Key media
www.wulff.fi/en
What Wulff?
A perfect working day with worklife services and products for work environment - responsibly with Wulff. Here you can find today's workplace products: e.g. cafe supplies, real estate and cleaning maintenance products, office and IT supplies, ergonomics, first aid, hygiene, protection and safety products, air purification, and innovative products for construction sites. Our selection also includes high-quality Canon printing and document management services. Our customers also purchase exhibition and event services and the design of commercial spaces from us. It is important for us to constantly develop our selection to be more responsible and our customer experience to be the best in the industry. We are growing strongly in worklife services: accounting services, personnel leasing and our newest industry, consulting. In addition to Finland, the Wulff Group operates in Sweden, Norway and Denmark. Wulff Group Plc is the only listed company in its field in the Nordic countries. The company was founded in 1890 and has been on the stock exchange since 2000. Net sales in 2023 was EUR 93.8 million.
