Röko (ROKO) Q4 2024 earnings summary

Executive summary

• Net sales increased 10% to MSEK 6,182 in 2024, with organic growth of 3% and Q4 up 13% to MSEK 1,669, driven by acquisitions and organic expansion.

• Adjusted EBITA grew 17% to MSEK 1,227, with margin improving to 20% from 19% year-over-year.

• Operating profit increased 18% to MSEK 969; net profit rose 30% to MSEK 702; EPS up 22% to SEK 47.33.

• Portfolio expanded to 28 companies, with five acquisitions in 2024, entering Germany, Belgium, and France.

• Portfolio includes companies across the UK, Nordics, Benelux, Germany, and France.

Financial highlights

• Adjusted EBITA margin improved to 20% in 2024 from 19% in 2023.

• Return on capital employed increased to 14.4% in 2024 from 13.1% in 2023.

• Return on equity stable at 13.4%.

• Cash conversion improved to 84% in 2024 from 81% in 2023.

• Cash flow from operations increased 18% to MSEK 1,097.

Outlook and guidance

• Targets annual EBITA growth and maintains an EBITA margin above 15%.

• Net debt/EBITDA RTM target remains below 3.0x, with temporary exceedance allowed for acquisitions.

• Dividend policy is to distribute 0–20% of net profit; no dividend paid for fiscal year 2023.

• Management expects M&A opportunities to remain below 2021-2022 levels due to market volatility.

• Strong financial position supports continued acquisition-driven growth.