Elanders (ELAN) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 reached MSEK 14,143 (EUR 1.4 billion), up from MSEK 13,867, with operations in over 20 countries and more than 8,000 employees.

• The group operates two main business areas: Supply Chain Solutions (80% of sales) and Print & Packaging Solutions (20%).

• Customer segments are diversified, with Electronics (26%), Fashion (23%), and Automotive (18%) as the largest contributors.

• Organic net sales declined 2% year-over-year, mainly due to challenges in the Automotive segment.

• Structural changes and cost reductions, including restructuring in Germany, the UK, and the USA, are expected to yield annual savings of MSEK 50 from 2025.

Financial highlights

• Q4 2024 net sales were MSEK 3,774 (Q4 2023: 3,574); full-year net sales were MSEK 14,143 (2023: 13,867).

• Adjusted EBITA for the year was MSEK 879 (6.2% margin), down from MSEK 927 (6.7%), with Q4 adjusted EBITA at MSEK 247 (Q4 2023: 289).

• Adjusted EBITDA margin for Q4 decreased to 5.9% from 7.3%, mainly due to lower Automotive volumes and soft North American fashion demand.

• Q4 result after tax was a loss of MSEK 14, compared to a profit of MSEK 101 in Q4 2023; adjusted result after tax was MSEK 26 (Q4 2023: 127).

• Operating cash flow for the year was MSEK 1,978, with a cash conversion rate of 90% and a SEK 145 million reduction in working capital.

Outlook and guidance

• Gradual improvement in demand is expected, with recovery in North America and continued positive trends in Asia and Europe.

• Structural measures, including discontinuation of large parts of German road transportation, aim to lower costs and improve margins.

• New facility in Thailand is operational and expected to contribute positively to 2025 earnings.

• No formal forecast for 2025 provided.