MEKO (MEKO) Q4 2024 earnings summary

Executive summary

• Achieved record-high adjusted EBIT of SEK 1,091M in 2024, up 13% year-over-year, with strong cash flow and a solid financial position, despite integration costs from Elit Polska and challenging market conditions.

• Net sales rose 8% year-over-year to SEK 18,046M, with 4% organic growth and 3% from the Elit Polska acquisition.

• Board proposes a dividend of SEK 3.90 per share, up from SEK 3.70, to be paid in two installments in 2025.

• Board strengthened with two new members, bringing expertise in automotive aftermarket and finance.

• MEKO remains market leader in Northern Europe, focusing on cost savings, efficiency, and procurement synergies.

Financial highlights

• Adjusted EBIT increased by 13% year-over-year to SEK 1,091M, surpassing the 10% target.

• Net sales increased 8% year-over-year to SEK 18,046M; Q4 net sales up 6% to SEK 4,650M.

• Cash flow from operating activities improved 10% to SEK 1,376M, supporting reduced net debt and dividend proposals.

• Gross margin improved in Q4 to 42.6%, driven by price adjustments and currency effects.

• Net debt/EBITDA (adjusted) improved to 2.6x, within the target range.

Outlook and guidance

• 2025 expected to be eventful, with major warehouse automation projects in Denmark, Norway, Finland, and Poland coming online.

• No significant extra costs anticipated from warehouse transitions; some double rent and minor moving costs expected in H1 2025.

• Effective tax rate expected to normalize to 23% in 2025 after a 25% rate in 2024.

• Focus remains on profitability, efficiency, and strengthening market position.

• Ongoing initiatives and synergy extraction in Finland and Poland aim to further improve profitability.