In This Article:
Release Date: April 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cenit AG (XTER:CSH) reported a 12.2% increase in revenue for 2024, reaching 207 million, driven by acquisitions and organic growth.
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The company achieved an organic growth rate of 5.2%, indicating strong performance beyond acquisitions.
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Cenit AG's EBITDA increased by 5.2% to 17.26 million, reflecting improved operational efficiency.
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The order backlog increased by 41%, suggesting strong future revenue potential.
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The equity ratio improved from 29% to 30.3%, indicating a stronger financial position.
Negative Points
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The EBIT for 2024 experienced a significant dip of nearly 20% compared to 2023, primarily due to acquisition-related costs and market challenges.
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Earnings per share dropped by 23%, leading to a decision not to distribute dividends for 2024.
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The company faced a 3.8 million write-off due to the bankruptcy of ASCO Holdings, impacting financial results.
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Cenit AG's automotive sector revenue share decreased by 2%, reflecting challenges in this industry segment.
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The company anticipates a weak Q1 2025, with ongoing market uncertainties affecting performance.
Q & A Highlights
Q: Can you clarify the expected cost savings from the restructuring and when they will become effective? A: The full effect of the 5 to 5.5 million cost savings will be realized in 2026, with a slight impact expected in the second half of 2025. The timing depends on how quickly team members join the restructuring program, especially in France where union participation is involved. (Respondent: Unidentified_2)
Q: What is the expected organic revenue growth for 2025, and how is Analysis Prime performing in the US market? A: The goal for 2025 is to achieve organic growth beyond 5%. Analysis Prime is facing a challenging market but has a promising pipeline. The target revenue for Analysis Prime in 2025 is $28 million, with no further earnouts attached. (Respondent: Unidentified_2)
Q: Are you expecting an increase in IITA over Q1 2024 despite a weak Q1 forecast? A: If we exclude the effects of Analysis Prime, a side move in IITA would be considered a good development. The automotive sector, which represents 28% of revenues, is currently reluctant due to market conditions. (Respondent: Unidentified_2)
Q: Can you quantify the impact of reduced M&A-related costs in 2025 compared to 2024? A: In 2024, M&A costs were around 800,000 due to the North American acquisition. In 2025, without planned acquisitions, these costs will not recur, resulting in savings. (Respondent: Unidentified_2)