Below is a brief summary of the year-end report. The year-end report is available in its entirety as an attached document and on the company's website.
Link to the year-end report: Financial reports - KB Components
Fourth quarter 2024 in summary
- Net sales increased to SEK 818 million (627)
- Operating profit (EBIT) increased to SEK 22 million (4)
- Adjusted operating profit (EBIT) decreased to SEK 51 million (64)
- Adjusted EBIT margin of 6.2 percent (10.2)
- Adjusted profit after tax was SEK 29 million (49)
The Group's net sales increased by 30%. 18% (SEK 145 million) of sales were related to tool projects with a lower margin compared to 16% (SEK 98 million) in the corresponding period of 2023.
Operating profit was impacted by costs related to the IPO process and the relocation of operations from Toronto to mainly Mexico.
Regional development
North America's sales increased to SEK 537 million (365) with an adjusted EBITDA result of SEK 64 million (54). Europe had sales of SEK 265 million (246) with an adjusted EBITDA result of SEK 23 million (44), while sales in the Asia region amounted to SEK 16 million (16) with an EBITDA result of SEK 7 million (3).
Volumes in North America benefited from continued strong development, primarily in Mexico and Dallas, where customers are growing strongly. Europe's weaker performance is explained by weaker demand from customers in construction and consumer-related areas where the economy is weak. In China, we see good earnings despite low volumes, which will grow gradually in 2025.
Full year 2024 in brief
- Net sales increased to SEK 2,721 million (2,333)
- Operating profit (EBIT) increased to SEK 199 million (197)
- Adjusted operating profit (EBIT) amounted to SEK 249 million (249)
- Adjusted EBIT margin of 9.2 percent (10.7)
- Adjusted profit after tax was SEK 158 million (170)
The Group grew by 17% over the year thanks to completed acquisitions and strong organic growth in North America. Acquired companies have not had the same profitability as the Group's average and some margin dilution has taken place as a result. However, we are on track to lift these businesses profitably according to plan and expect to gradually achieve this and achieve the Group's margin target in 2025.
Comments from the CEO
Stefan Andersson, President and CEO of KB Components, comments:
We continue the trend of strong growth, both organically and through acquisitions, where during the quarter Plastone Group with operations in Finland and Estonia (sales of SEK 328 million in 2023) was taken over on December 20 and JBJ Technology in Delhi, India with sales of SEK 130 million was taken over after the end of the quarter (January 8). These businesses have been acquired at a total goodwill premium of SEK 8 million, which reflects their earning capacity, which at the time of acquisitions was clearly lower than the KB Components Group's average. We have good hopes of raising margins to the Group's target of 10% operating profit (EBIT) within a reasonably short period of time (12-18 months).
With these acquisitions, the Group has achieved sales of SEK 3,200 million and we have gained important new customers in the areas of Medical (the entire unit in Finland works towards this sector) and electrical engineering, which is the area that the operations in Estonia support. KB Components thus continues on the theme that "it is easier to acquire entire companies with their customer base than to organically win new customers". Overall, we expect strong growth and good earnings for the full year 2025, better than 2024, i.e. a continuation of the trend we have had for many years, where the coming years will be better than the previous year.
Dividend
The Board of Directors and the CEO have decided to propose to the Annual General Meeting a dividend of SEK 1.50 per share, corresponding to SEK 84 million in total. The dividend payout ratio amounts to 78 percent of the Group's profit after tax (53% of the Group's adjusted profit after tax).
Annual General Meeting
The Annual General Meeting will be held on 20 May 2025 at 3.00 p.m. at KB Components' premises in Örkelljunga, Sweden. Shareholders who wish to submit proposals to the Nomination Committee can contact the Chairman of the Nomination Committee, Erling Levin, e-mail erling.levin@gmail.com.
For additional information, please contact:
Stefan Andersson, CEO +46 (0) 70 249 97 60
Maria Gumabon, CFO +46 (0) 735 95 51 37, maria.gumabon@kbcomponents.com
This information is information that KB Components 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 2025-02-27 15:00 CET.
About KB Components
KB Components supplies products for light vehicles, heavy vehicles, medical, industrial, furniture, lightning, chrome plating and industrial windows. We specialize in providing high-quality polymer components across all areas, as supported by the corresponding certifications we hold. We proudly supply some of the world's leading OEMs with innovative plastic and composite solutions, including polymer components, in all business areas. The company is listed on Nasdaq First North Premier Growth Market.
KB Components Certified Adviser is Svensk Kapitalmarknadsgranskning AB, www.skmg.se.
