Cembre (CMB) Q4 2024 earnings summary

Executive summary

• Consolidated revenues reached €229.7M in 2024, up 3.2% year-over-year, with net profit rising 4.3% to €42.6M.

• Board proposes a €1.88 dividend per share, representing 74.2% of consolidated net profit, to be paid in May 2025.

• Investments reached €29.5M in 2024, supporting expansion and automation, with €73.3M invested over five years.

• The group employs 917 people globally, with a strong European presence and growing international reach.

• Ordinary Shareholders' Meeting scheduled for April 29, 2025, will address an incentive plan and share buyback authorization.

Financial highlights

• EBITDA was €66.2M (28.8% margin), down 0.6% year-over-year; EBIT was €52.8M (23.0% margin), down 2.1%.

• Net operating working capital increased to €92.9M (40.5% of sales); net fixed assets rose to €127.2M.

• Net financial position declined to €2.0M surplus from €18.2M, mainly due to €28.2M in tangible asset investments.

• EPS increased to €2.53 from €2.43 year-over-year.

• Cash and cash equivalents at year-end were €13.5M, down from €20.9M.

Outlook and guidance

• Management expects further turnover growth and positive results in 2025, with revenues for the first two months of 2025 up 2.9%.

• Focus on new product development, R&D, and expanding distribution, especially in the US and Germany.

• Ongoing investments in automation and production capacity, including a €42M expansion project for electrical connectors.

• Emphasis on cost management and operational efficiency to sustain margins.