Cabka (CABKA) H2 2024 earnings summary

Executive summary

• 2024 sales declined 8% to €181.9 million amid challenging markets, with intentional price reductions and lower volumes in US Customized Solutions and European contract manufacturing, but gross margin improved by 2.6–3pp to 50.9% through operational enhancements and product mix shift.

• Transformation strategy centers on market leadership, expanded recycling, innovation for circular systems, and leveraging ESG and regulatory trends.

• Sustainability remains a core focus, with 88% of materials recycled, far above the market average.

• Continued investment in sales, automation, operational efficiency, and leadership development, with new teams in key regions.

• The Shift program is underway to cut costs, boost efficiency, and reallocate resources.

Financial highlights

• Revenue declined 8% to €181.9 million in 2024, mainly due to lower US Customized Solutions and Contract Manufacturing sales.

• Operational EBITDA was €20.5 million (11.3% of sales), down from €24.4 million in 2023.

• Net income from operations was €-4.5 million, a significant decrease from €2.3 million in 2023.

• Gross margin improved from 48.3% to 50.9% due to operational efficiencies and product mix.

• Net working capital at €26.5 million (14.6% of sales), below 20% guidance.

Outlook and guidance

• 2025 sales and EBITDA expected to at least match 2024 levels, amid ongoing macroeconomic uncertainty and cautious customer capex.

• 2030 targets: €300 million sales, 15–17% EBITDA margin, annual CAPEX below €20 million, net working capital under 20% of revenue, and 30–35% dividend payout.

• Dividend for 2024 will not be paid, pending AGM approval; future dividends depend on results.