Nedap (NEDAP) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was €251.6 million, down 4% from 2023, mainly due to a strong prior-year base and slow Livestock market conditions.

• Recurring revenue rose 19% to €100.2 million, now 40% of total revenue, driven by new and existing customers.

• Added value as a percentage of revenue increased to 71.5% from 69.0% in 2023.

• Operating profit was €23.9 million (down 13% year-over-year), with an operating margin of 9.5%.

• Dividend per share remains at €3.20.

Financial highlights

• Profit for the year was €18.5 million, down 14% from €21.6 million in 2023.

• Earnings per share decreased to €2.82 from €3.31.

• Net debt increased to €9.6 million at year-end, with net debt-to-EBITDA at 0.3.

• Operating cash flow was stable at €28.9 million.

• Return on invested capital (ROIC) declined to 26% from 31%.

Outlook and guidance

• Improved market sentiment in H2 2024, especially in key markets, is expected to drive revenue growth in all four key markets in 2025.

• EBIT margin ambition reiterated to grow toward 15% by 2026.

• Recovery in the Livestock market is anticipated but remains uncertain in timing.