Schouw & Co (SCHO) Q4 2024 earnings summary

Executive summary

• Revenue declined 7% year-over-year to DKK 34.7 billion in 2024, mainly due to lower input costs and activity levels.

• EBITDA increased 3% to a record DKK 2.93 billion, reflecting effective margin management.

• Cash flow from operations hit an all-time high, up 44% to DKK 2.55 billion, with net working capital reduced by DKK 450 million.

• Net interest-bearing debt decreased 15% to DKK 5,376 million, with leverage well below 2x EBITDA.

Financial highlights

• Dividend and share buybacks totaled DKK 644 million.

• Investment level was DKK 685 million in 2024, reflecting prudent capital allocation.

• Net working capital at DKK 6.77 billion, with inventories down from DKK 8.0 billion to DKK 7.2 billion.

• Cash flow from operations rose 44% to DKK 2,553 million compared to 2023.

• ROIC (excluding goodwill) improved by 0.2pp to 13.0%.

Outlook and guidance

• 2025 turnover expected in the range of DKK 33.4–35.9 billion; EBITDA guidance DKK 2.82–3.12 billion; EBIT: DKK 1,680–1,980 million.

• CapEx in 2025 focused on maintenance and finalizing ongoing projects, with upgrades in Fibertex Nonwovens and slightly higher spending planned.

• Most portfolio businesses expect stable or improved EBITDA in 2025, except Fibertex Personal Care, which anticipates continued challenges.

• Cautiously optimistic outlook for 2025, supported by a well-invested platform and strong customer relationships.