Kentima (KENH) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 decreased by 11% year-over-year to 54,212 KSEK, with a weak first half but improved demand in the second half.

• Record-high order intake for proprietary products, with order backlog at a high level by year-end.

• Significant investments in product development and several new product launches in automation and security segments.

• Management expects substantial growth in 2025, driven by increased sales and improved profitability.

Financial highlights

• Q4 net sales: 14,642 KSEK, down 7% compared to Q4 2023; full-year net sales: 54,212 KSEK, down 11%.

• Q4 EBITDA: 1,336 KSEK (down 27%); Q4 EBIT: 254 KSEK (down 60%).

• Full-year EBITDA: 3,911 KSEK (down 50%); full-year EBIT: -613 KSEK (from 3,176 KSEK in 2023).

• Q4 cash flow from operations: 4,309 KSEK (up from 1,546 KSEK); full-year: 8,300 KSEK (up from 5,746 KSEK).

• Cash and equivalents at year-end: 5,919 KSEK, including unused credit of 5,406 KSEK.

Outlook and guidance

• Management anticipates significant growth in 2025, with both group sales and proprietary product sales expected to rise sharply.

• Profitability and margins are expected to improve, supported by a strong order backlog and new product launches.

• Export initiatives and a record order to be delivered in 2025 are expected to further boost results.