October-December 2024
January-December 2024
Significant events during and after the quarter
No significant events have occurred during or after the end of the period.
COMMENTS FROM THE CEO
Margin improvements in a challenging economy
Sales in the fourth quarter of 2024 amounted to 467 MSEK with an EBITA margin of 6.0%. Compared with the corresponding quarter in 2023, this means that sales increased by 3.8% and that the EBITA margin improved from 5.1%. The quarter concluded a tougher year in terms of the economy although there is hope that demand will gradually improve in 2025.
The fourth quarter and the whole of 2024 have been characterized by a challenging economic situation in our customer segments. Therefore, it is pleasing to have achieved sales growth compared to the corresponding quarter last year. New construction and renovation of private bathrooms and kitchens continued to show the weakest demand, while the professional renovation market showed slightly higher activity. Our clear presence in renovation projects is therefore a strength, as this part of the market is historically more stable compared to new construction. It is also satisfying that in a recession we have managed to grow in several countries and segments, including the UK and Ireland, as a result of the investments we have made. We have also grown in Sweden and Denmark thanks to good products and local service.
The gross margin also improved in the fourth quarter, which is pleasing. This is due to a combination of product mix and efficiency improvements in the factory in Mora. The EBITA margin also improved compared to the corresponding quarter in 2023, although it is lower than we would like. We can also say that cash flow has once again been strong for the year, so we are in a good financial position to invest further in the business. Our assessment is that demand will remain relatively weak in 2025, but with the hope that lower interest rates and inflation will have a positive effect on demand. However, the world around us is turbulent and we are closely following developments to ensure we can adapt to new conditions.
We experience good support and trust from our customers, which is evident in the fact that we are gaining market shares in several customer segments. The product development of recent years means that we have a broad and deep product portfolio with many customer benefits. During the quarter, we have exhibited at various local fairs and events with a positive response from customers. We will take this with us into 2025. In 2024, we have also been awarded EcoVadis's silver ranking for the fourth year in a row. That shows that our sustainability work is rated among the top 13% within our category of global manufacturing companies. This is an acknowledgement of our ability to offer customers attractive sustainable products, key components of our strategy. Therefore, we feel confident in our strategy with a clear focus on profitable growth combined with a high level of awareness and the ability to adapt to the economy and the world around us.