Storskogen Group (STOR) Q4 2024 earnings summary

Executive summary

• Achieved one of the strongest quarters since IPO, with significant improvements in key metrics, operational efficiency, and margin expansion across all business areas.

• Full-year net sales reached SEK 34.2 billion, with adjusted EBITA/EBITDA of SEK 3.2 billion and a margin of 9.4%.

• Q4 net sales were SEK 8,591 million, adjusted EBITA/EBITDA SEK 849 million, and margin 9.9%, with profit for the quarter up 170% to SEK 388 million.

• Record high Q4 cash flow at nearly SEK 1.7 billion, with a 97% cash conversion rate.

• Leadership transition: Alexander Bjärgård steps down as Head of M&A, succeeded by Giovanni/Johan Ekström.

Financial highlights

• Q4 adjusted EBITA/EBIT grew 20–33% to SEK 849 million, margin improved to 9.9%; full-year EBITA/EBIT stable at SEK 3.2 billion, margin 9.4%.

• Q4 profit for the period up 170–228% to SEK 376–388 million; full-year profit for the period down 88% to SEK 116 million due to one-off items.

• Adjusted EPS rose 321% to SEK 0.19 in Q4 and 26% to SEK 0.57 for the year.

• Cash flow from operating activities was SEK 1.7 billion in Q4 and SEK 3.1 billion for the year.

• Leverage ratio (net debt/EBITDA) at 2.3x, lowest since Q1 2022.

Outlook and guidance

• Expect similar seasonal sales and margin patterns in 2025, with Q1 softer and Q4 stronger.

• New financial targets for 2025–2027: adjusted EBITA margin above 10%, 15% EBITA CAGR, and net debt/EBITDA of 2–3x.

• Focus on organic profit growth, margin protection, and efficiency, with acquisitions to resume as leverage allows.

• Cautiously optimistic about market sentiment, especially in Services and Trade; Industry expected to recover in 2025.