OVS (OVS) Q4 2024 earnings summary

Executive summary

• FY2023 net sales rose 1.5% YoY to €1,535.6m despite adverse weather and a 2.5% decline in the reference market.

• Adjusted EBITDA increased €2.0m to €182.2m; adjusted net profit was €75.9m and reported net profit €52.4m.

• Cash flow was €64.3m; adjusted net financial position improved to €145.5m and leverage to 0.80x at 31 Jan 2024.

Financial highlights

• Adjusted gross margin was 57.3%, up from 57.1%; adjusted EBITDA margin was 11.9%, unchanged YoY.

• Adjusted EBIT was €119.1m, down 0.8%; adjusted PBT was €101.3m, down 4.5%.

• Adjusted net profit was €75.9m versus €78.4m; reported net profit was €52.4m versus €39.6m.

• Q4 record net sales were €433.1m, up 1.7%, and adjusted EBITDA was €60.7m, up €4.6m YoY.

Outlook and guidance

• FY2024 sales are expected to grow, supported by customer-base expansion, product projects and expected weather normalisation; early-2024 sales were up ~5% YoY against a strong comparison period.

• Product-cost normalisation is expected to benefit FY2024; sales growth and improved margin are expected to offset higher labour costs.

• Logistics automation and smart-register projects are scheduled for completion by end-2024 and are expected to support future cash generation.

• The Goldenpoint investment project is underway, with expectations of growth in the market segment.