Alfa Laval AB (publ) (OTCPK:ALFVY) Q4 2024 Earnings Conference Call February 5, 2025 3:00 AM ET
Company Participants
Tom Erixon – CEO
Fredrik Ekstrom – CFO
Conference Call Participants
Max Yates – Morgan Stanley
Sebastian Kuenne – RBC Capital Markets
Klas Bergelind – Citi
James Moore – Redburn Atlantic
Andreas Koski – BNP Paribas Exane
John Kim – Deutsche Bank
Sven Weier – UBS
Tom Erixon
Good morning, and welcome to Alfa Laval’s Fourth Quarter Earnings Call and also for the full year, so Frederik and I, we will give you a run down on the year and the quarter.
As always, let me start with a couple of introductory overview comments from the year. Growth continued strong in the fourth quarter and the full year of ’24, ahead of expectations with favorable market conditions in most applications. It was especially good momentum in the short cycle business in the food and water and in service overall.
Now, we enter 2025 with a solid SEK52 billion order book and good momentum on the short cycle side. The full year ’24 margin was at 16.6%, ahead of last year and also slightly above our expectations when we entered the year. Q4 was seasonally a bit weaker but also affected by some one-off charges. The operational cash flow was solid in Q4, with SEK4 billion and the new record level of SEK12 billion for the full year ’24. And so consequently, our balance sheet is strong at the moment and supportive of various options going forward.
Let me then go to the key figures. Organic growth was strong in Q4 at 8% organically with good conditions in many markets and more positive business climate in the second half of the year compared to the first half. Invoicing also grew at 8% but somewhat below expectations. The order
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