Fourth quarter of 2024 in brief

• Sales increased to SEK 2,382 million (2,252)
• Operating profit (EBITA) increased to SEK 240 million (177)
• EBITA margin of 10.1% (7.9)
• Profit after tax was SEK 163 million (125, excl. non-recurring items in 2023)
• Basic and diluted earnings per share increased to SEK 0.61 (0.46, excl. non-recurring items in 2023)
• Cash flow from operating activities increased to SEK 480 million (186)

The Group’s net sales, adjusted for currency, increased by 5% in the fourth quarter. Cash flow from operating activities was very strong in the quarter, amounting to a full SEK 480 million, thus further reinforcing our already solid financial position.

Business area performance

Medical Solutions sales amounted to SEK 1,359 million (1,300), giving an organic growth of 4%. Operating profit (EBITA) increased to SEK 152 million (129) and the EBITA margin to 11.2% (9.9). The Drug Delivery market area had healthy volumes for most of its products, while In vitro diagnostics (IVD) also delivered growth compared with low volumes in the same quarter last year.

Engineered Solutions sales amounted to SEK 1,033 million (958); adjusted for currency, this was a sharp increase of 7%. Operating profit (EBITA) increased to SEK 95 million (52) and the EBITA margin to 9.2% (5.4). All market areas, apart from automotive, displayed sales growth in the quarter. Materials (formerly EMC) increased organic sales by as much as 20%, supported by a recovery for network equipment within telecom. The business area’s EBITA margin strengthened by a full 3.8 percentage points to 9.2%, thanks to improved volumes and efficiency.

Full year 2024 in brief

• Sales increased to SEK 9,664 million (9,546)
• Operating profit (EBITA) rose to SEK 958 million (761, excl. non-recurring item in 2023)
• EBITA margin of 9.9% (8.0, excl. non-recurring item in 2023)
• Profit after tax was SEK 658 million (545, excl. non-recurring items in 2023)
• Basic and diluted earnings per share totaled SEK 2.44 (2.02, excl. non-recurring items in 2023)
• Cash flow from operating activities increased to SEK 1,377 million (781)
• The equity/assets ratio was 59% (56) and net financial liabilities were SEK 671 million (895)

Comments from the CEO

Christer Wahlquist, President and CEO of Nolato AB, commented:

We are maintaining our trend of organic growth quarter-on-quarter after having significantly changed our product mix over the past two years. At the same time, our EBITA margin rose to 10.1%, which is an improvement of 2.2 percentage points compared with last year. We thus see that our strategic price revisions and cost savings implemented to boost profitability are gradually bearing fruit.

Nolato’s overall strategy is to be the customer’s first choice of innovative partner in sustainable design and production. We achieve this by having in-depth knowledge about, and a close relationship with, our customers. Together with our flexibility and production capacity on three continents, this enables us to serve major global and strategic customers. The foundation has been laid for increasingly profitable growth over time.

Dividend

At the Annual General Meeting, the Board of Directors and the President and CEO will propose an unchanged dividend of SEK 1.50 per share (1.50), which corresponds to SEK 404 million (404). The pay-out ratio is 61% (74, excluding non-recurring items in 2023). The dividend yield was 2.8% on the share price as of December 31, 2024.

Annual General Meeting

The Annual General Meeting will be held on May 6, 2025 at 3 pm CET at Grevieparken, Sports Hall, Hålarpsvägen 14, Grevie, Sweden. Shareholders who would like to submit proposals to the Nomination Committee can contact the chairman of the Nomination Committee, Henrik Jorlén, by e-mail at henrik.jorlen@gmail.com or by mail at Kommendörsgatan 4, 269 77 Torekov, Sweden.

Capital Markets Day

Nolato will hold a Capital Markets Day on March 13, 2025 in central Stockholm. The Capital Markets Day will provide an opportunity for investors, analysts and the media to gain an update on the Company’s position and operations as well as its strategy and goals. The event starts at 1 pm CET. Further information and a link for registration will be available at www.nolato.com/CMD.