ALM Equity (ALM) Q4 2023 earnings summary

Executive summary

• FY 2023 total result was -SEK 2,708m; Q4 result was -SEK 453m, largely reflecting lower asset values and negative portfolio-transaction effects.

• Adjusted NAV was SEK 4.3bn, or SEK 281 per ordinary share, versus a year-end share price of SEK 280.

• Strategy shifted toward consolidating portfolio assets and pursuing acquisitions or restructurings to create long-term value.

Financial highlights

• FY revenue was SEK 2,386m versus SEK 6,902m; operating result was -SEK 1,656m versus -SEK 712m, and total result was -SEK 2,708m versus -SEK 576m.

• Q4 revenue was SEK 639m versus SEK 1,176m; operating result was -SEK 407m and total result -SEK 453m, versus -SEK 1,422m and -SEK 1,421m.

• FY results included -SEK 1,818m from associated companies; negative effects included Svenska Nyttobostäder and Klövern, with few project completions and transactions.

• FY cash flow was -SEK 629m and Q4 cash flow -SEK 691m; year-end cash was SEK 444m versus SEK 1,073m.

• Year-end equity was SEK 2,972m versus SEK 5,756m, and total assets were SEK 7,662m versus SEK 11,518m.

Outlook and guidance

• Management expects continued pressure in new construction and further industry consolidation for at least 12–18 months; lower rates may take time to lift construction activity.

• 2024 priorities include growing volumes in owned operations, consolidating assets, pursuing strategic transactions, and optimizing financing and corporate structures.

• 2xA Entreprenad started six external projects in four months, covering ~700 homes with ~SEK 1.2bn in order value; further starts could support activity.