Alligo (ALLIGO) Q4 2024 earnings summary

Executive summary

• 2024 was a challenging year with weak market conditions, especially in construction and manufacturing, but oil and gas in Norway remained stable; revenue for Q4 2024 rose 2.0% to MSEK 2,589, driven by acquisitions, while organic growth was -3.0%.

• Adjusted EBITA for Q4 was MSEK 214 (8.3% margin), down 30.5% year-over-year, reflecting lower volumes, negative customer mix, and reduced supplier bonuses.

• Eleven acquisitions were completed in 2024, including Corema Svets & Industriprodukter AB and, after year-end, Svenska Batterilagret AB, strengthening the battery, welding, and specialty segments.

• Operational improvements included stabilizing the Vestby warehouse, launching a new ERP system, and introducing new brands and services such as ReCare.

• The Board proposes a dividend of SEK 2.00 per share for 2024, down from SEK 3.50, representing 36% of net result.

Financial highlights

• Q4 2024 revenue: MSEK 2,589 (+2.0% YoY); full-year revenue: MSEK 9,333 (flat YoY); organic growth for the year was -3.9%.

• Adjusted EBITA Q4: MSEK 214 (8.3% margin, -30.5% YoY); full-year: MSEK 601 (6.4% margin, -27.3% YoY).

• Gross margin Q4: 41.1% (down from 43.4% YoY); full-year: 40.7% (down from 41.4%).

• Operating cash flow Q4: MSEK 438 (down from 526 YoY); full-year: MSEK 952.

• Net operational liabilities/EBITDA (excl. IFRS 16): 2.4x at year-end; available cash and credit facilities at year-end totaled MSEK 1,490.

Outlook and guidance

• Market conditions remain challenging but are showing signs of stabilization, with improvement expected in the second half of 2025 and growth opportunities in technology and through acquisitions.

• Small construction customers in Sweden are expected to lead the recovery; management remains cautious but optimistic.

• Continued cost control, operational streamlining, and new service launches planned for 2025.