Besqab (BESQAB) Q4 2024 earnings summary

Executive summary

• Achieved strong sales growth and increased revenue in Q4 2024, with 784 Mkr in sales and a gross profit of 128 Mkr, supported by market recovery and successful project launches.

• Full-year net revenue reached 2,241 Mkr, with a gross profit of 384 Mkr and a gross margin of 17.2%.

• Operating profit for Q4 was 65 Mkr (8.3% margin), and for the year 156 Mkr (7.0% margin).

• The merger with Aros Bostad strengthened the company's position, enabling further production starts and profitable growth, with synergy effects and cost savings realized.

• Focused efforts on organization, land bank, and offerings have positioned the company for scalable growth.

Financial highlights

• Q4 gross profit of 128 Mkr, 32% higher than the Q2/Q3 average, with a stable margin; Q4 operating profit 83% higher than Q2/Q3 average.

• Segment reporting: Net sales SEK 2,240.7m, gross profit SEK 384.3m, gross margin 17.2%, operating profit SEK 156.0m, operating margin 7.0%.

• 2024 full-year return on equity was 5.1%.

• 195 building rights sold in Q4, generating a positive liquidity effect of about 300 Mkr.

• Booked or sold homes in ongoing production: 77%; homes sold during the year: 280.

Outlook and guidance

• Conditions are in place for continued growth and profitability, with plans to scale up production volumes.

• Market indicators suggest a stronger housing market in 2025, supported by rising real wages, lower interest rates, and tax relief.

• The process to move the stock listing from First North to Nasdaq Stockholm has begun, expected to take about six months.

• No dividend planned for common shares in the coming years; resources will be allocated to new project starts and acquisitions.