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Arla Plast AB Year-end report 2024

Report
Regulatory
Strong cash flow and increased profit

OCTOBER – DECEMBER 2024

  • Net sales amounted to SEK 362.3 million (226.6), an increase of 60%.
  • Net sales for comparable segments decreased by SEK 3.3 million, a decrease of 2%.
  • Operating profit amounted to SEK 22.9 million (16.0), an increase of 43%.
  • Non-recurring items affected the result by SEK -5.7 million (0.0).
  • The operating margin decreased to 6.3% (7.1).
  • The profit for the period amounted to SEK 28.2 million (9.1), an increase of 210%.
  • Earnings per share, before dilution, amounted to SEK 1.34 (0.43) and after dilution to SEK 1.34 (0.43).
  • Cash flow from operating activities amounted to SEK 108.0 million (78.6), an increase of 37%.

JANUARY – DECEMBER 2024

  • Net sales amounted to SEK 1,398.0 million (1,015.1), an increase of 38%.
  • Net sales for comparable segments decreased by SEK 43.1 million, a decrease of 4%.
  • Operating profit amounted to SEK 116.7 million (91.6), an increase of 27%.
  • Non-recurring items affected the result by -SEK 21.5 million (3.0).
  • The operating margin decreased to 8.3% (9.0).
  • The profit for the period amounted to SEK 97.9 million (66.9), an increase of 46%.
  • Earnings per share, before dilution, amounted to SEK 4.67 (3.29) and after dilution to SEK 4.67 (3.19).
  • The net cash amounted to SEK 17.3 million (81.3) at the end of the period, equivalent to 0.1 times (0.6) EBITDA.
  • Cash flow from operating activities amounted to SEK 166.0 million (165.5).
  • The Board proposes a dividend of 1.50 SEK per share (1.25), equivalent to 32% (39) of net profit.

Considerably higher net sales, increased profit and a strong cash flow describes the fourth quarter of 2024.

Market

We note a market with volumes, which according to our perception, are in level with the comparison quarter in the previous year. The demand from the construction industry is continued weak but in level with previous year while the automotive industry has further weakened. The volumes within segment Spain have decreased somewhat impacted by the market demand and our business plan for the segment. We have though noted a good demand within other segments, especially in the sectors industry and industrial projects. By the end of the year we have observed an increased demand for our high-optical products.

Through the acquisition of Nudec S.A.U., carried out in during the second quarter of 2024 our customer portfolio has strengthened and overall the sales volume is significantly higher. We have a considerably stronger market position in Central and Southern Europe.

The raw material prices, which affect both net sales and gross margin, have had a modest downward trend during the fourth quarter but are on a slightly higher level than in the comparison quarter. Price competition towards customers increased at the end of the year, which is a consequential effect of declining raw material prices and the market demand.

Increased net sales

The net sales for the fourth quarter increased with 60% which is an effect of the additional net sales from segment Spain. The lower net sales in the comparable segments are mainly an effect of increased price competition and the market demand.

We see a continued positive diversification in our product and customer portfolio through the additional the sales volume of PETG and PMMA from segment Spain.

During the fourth quarter of 2024 the operating margin amounted to SEK 22.9 million, which is an increase of 43% compared to the same period previous year. Our margins in the quarter are slightly lower compared to the same period affected by the slightly weaker margin in segment Spain and non-recurring items in segment Sweden. During the quarter we have reduced our temporary build-up of inventory made during quarter three 2024, this has resulted in a strengthened cash flow from the operating activities which have enabled a decreased net debt to a net cash of SEK 17.3 million.

It is through the positive cash flow of recent years we have been able to finance the acquisition of Nudec S.A.U. with only own funds.

Outlook

When I summarize the fourth quarter and full year 2024 I can conclude that we have moved forward our position in the European market. Through the acquisition of Nudec S.A.U. we have increased our local presence in Central and Southern Europe, which is in line with our long-term business and sustainability ambitions.

Our financial position is strong and we continue to develop our organization and align operations in segment Spain with other segments to increase the efficiency and gain synergy effects. In segment Czech Republic the modernization of the machinery and streamlining of production flows continue. In segment Sweden the planning of warehouse and production facility continues.

For the first quarter we see a stable but continued weak market within some sectors. The perception is that our well-diversified customer portfolio will balance between the sectors.

During quarter four the raw material prices continued to decrease and seem to continue further down in the first quarter 2025.

We can be proud of the results for 2024. We have achieved one of our best financial results ever, strengthened our company significantly and made it more sustainable. I want to thank all competent and dedicated employees for their efforts which have made this possible.

Christian Krichau

President and CEO

For further information, please contact:

Christian Krichau, President and CEO, +46 141-20 38 58

Forward-looking information

Some statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the factors specifically highlighted, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic situation, changes in exchange rates and interest rates, political developments, the impact of competing products and their prices, and disruptions in the supply of raw materials.

This information is such information that Arla Plast AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on February 19, 2025 at 8:00 am (CET).

About Arla Plast

Arla Plast is a producer and supplier of extruded sheets made of technical plastics. The plastic sheets are made of polycarbonate (PC), acrylonitrile butadiene styrene (ABS), glycol-modified polyethylene terephthalate (PETG) and polymethyl methacrylate (PMMA) and have a large number of areas of application, such as safety products, machine guards, ice hockey rinks, greenhouses, pool covers, sound walls, suitcases, automotive components and various construction-related areas of application. The company is headquartered in Borensberg, Sweden, and has a total of four production facilities in Sweden, the Czech Republic and Spain and a distribution unit in Germany. Arla Plast has a turnover of about SEK 1,400 million, has approximately 350 employees and delivers to more than 1000 customers in over 50 countries.

More information about Arla Plast is available at www.arlaplastgroup.com.

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