Green Landscaping Group (GREEN) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 rose 9% year-over-year to SEK 6,352 million, with 3% organic growth and acquisitions contributing 7%.

• EBITA increased 3% to SEK 528 million for the year, with a margin of 8.3% (down from 8.8% in 2023).

• Cash flow from operating activities improved to SEK 601 million for the year and SEK 282 million in Q4, reducing leverage to 2.5x.

• Eight acquisitions were completed in 2024, expanding presence in six countries, including three in Q4 in Finland, Switzerland, and Germany.

• Sweden underperformed in Q4, but Norway and Other Europe segments delivered robust growth and profitability.

Financial highlights

• Net sales for 2024 reached SEK 6.4 billion, up 9% year-over-year; Q4 net sales rose 7% to SEK 1,774 million.

• EBITA for the year was SEK 528 million, margin at 8.3%; Q4 EBITA was SEK 164 million, margin at 9.3%.

• Earnings per share in Q4 was SEK 1.09, down from SEK 1.66 last year due to a prior-year one-off gain.

• Operating cash flow for 2024 was SEK 601 million; Q4 operating cash flow was SEK 282 million.

• Order backlog at year-end was SEK 7,312 million, with normal quarter-to-quarter fluctuations.

Outlook and guidance

• Targeting 10% annual growth, with 8-10 acquisitions planned for 2025 and focus on margin improvement in Sweden.

• Market conditions expected to remain stable but competitive in 2025, with no rapid improvement anticipated.

• No dividend proposed for fiscal year 2024, despite a target payout of 40%.

• Management expects continued improvement in Swedish operations through best practice sharing and cost structure reviews.