Garo Reports Improved Q4 Profitability Amidst Sales Decline
Swedish electrical products manufacturer Garo has reported positive earnings before interest and taxes (EBIT) for the fourth quarter of 2024, alongside an improved cash flow, despite a year-on-year decline in net sales.
Garo, a company manufacturing electrical products, announced its year-end financial results for 2024, highlighting a return to positive EBIT in the final quarter. During the fourth quarter, net sales decreased by 9% to MSEK 283.8 compared to the previous year. However, the adjusted EBIT turned positive, reaching MSEK 3.3 from a negative MSEK -8.3 in the same period last year.
For the full year 2024, Garo's net sales fell by 16% to MSEK 1,152.0. The adjusted EBIT for the entire year was MSEK -7.2, a significant drop from MSEK 42.9 in 2023. The company attributed the full-year loss partly to non-recurring items, including a substantial impairment charge.
Within its business segments, Garo Electrification saw a 2% sales increase in the fourth quarter, while Garo E-mobility experienced a 34% sales decrease. Garo acknowledged the challenging and competitive nature of the E-mobility market but stressed its importance for future growth, noting that cost-saving measures, including workforce reductions, have been implemented.
Incoming CEO Jonas Klarén stated that the company aims to leverage its stable Electrification division as a foundation while continuing to develop its E-mobility offerings. He expressed confidence in Garo's future growth prospects and enhanced profitability, emphasizing the role of its employees and core values.