Slide 1: Year-end Report Q4 2024
Year-end Report Q4 2024 1 January – 31 December Friday, February 14, 2025 1
Slide 2: Presenters
Presenters Clein Johansson Ullenvik Irene Wisenborn Bellander Group President & CEO CFO 2
Slide 3: Agenda
AGENDA • This is Alligo • Highlights Q4 2024 • Update – presentation of Corema & Batterilagret • Financials • Summary and outlook • Q&A
Slide 4: Alligo – a leading player in workwear, personal protection, tools and supplies
Alligo – a leading player in workwear, personal protection, tools and supplies in the Nordic region 9,333 2,522 218 Main concept MSEK Revenue* Employees* Stores* brands: Revenue EBITA Revenue per geographic area 2024 per geographic area 2024 per brand category 2024 7% 17% 18% 17% 76% 28% 55% 82% SE
Slide 5: Agenda
AGENDA • This is Alligo • Highlights Q4 2024 • Update – presentation of Corema & Batterilagret • Financials • Summary and outlook • Q&A
Slide 6: Q4 2024 business conditions
Q4 2024 business conditions Market situation Proactive management Delivery capacity Macroeconomic factors • Continued weak market • Driving sales • Good and stable in • Continued economic - Several customer Sweden and Finland uncertainty in the segments • Growth by acquisitions business cycle - Stab
Slide 7: Q4 2024 in brief
Q4 2024 in brief – Continued weak market, several initiatives for the future Revenue Organic growth Operating cash flow Continued +2.0% slowdown in the market, Oil & Gas -3.0% Acquisition- driven growth of 6.8 % 438 remains stable MSEK (526) Adjusted EBITA Adjusted EBITA margin Gross margin Weak vol
Slide 8: Q4 2024 highlights
Q4 2024 highlights Acquisitions Sustainability Operations • Batterilagret is Alligo’s • Climate targets for scope • Initiated a project to improve largest acquisition so far 1, 2 and 3 sent to Science the weak profitability in Based Targets initiative Finland. • Strengthens the existing for validati
Slide 9: Agenda
AGENDA • This is Alligo • Highlights Q4 2024 • Update – presentation of Corema & Batterilagret • Financials • Summary and outlook • Q&A
Slide 10: 2024 – signed nine acquisitions, adding ≈750 MSEK in annual revenues
2024 – signed nine acquisitions, adding ≈750 MSEK in annual revenues ...as well as 200 employees and 42 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Hämeen Teollisuuspalvelu Oy Industrial Components/Tools/Workwear/ April 2024 87 18 1 Protective Equipment I
Slide 11: Corema Svets & Industriprodukter AB
Corema Svets & Industriprodukter AB A full-service supplier of welding, industrial products and fasteners: • Annual turnover of SEK 155 million with good profitability • Operations in Gothenburg and Sundsvall • 25 employees • Has a strong fastening offering • Well-established customer base in the ma
Slide 12: Svenska Batterilagret AB
Svenska Batterilagret AB A leading battery specialist in Sweden and Alligo's largest acquisition to date: • Significantly strengthens the Group's offering in batteries and battery accessories • Annual turnover of SEK 275 million with strong profitability • 27 stores across Sweden, head office in Kun
Slide 13: Agenda
AGENDA • This is Alligo • Highlights Q4 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 14: Acquisition driven growth counteracts weak organic sales
Acquisition driven growth counteracts weak organic sales – Decreased contribution margin due to negative mix effects and decreased supplier bonus Revenues and EBITA Highlights Q4 2024 2024 2023 2024 2023 • Revenue increased by 2.0 % MSEK Okt-Dec ∆, % Okt-Dec Jan-Dec ∆, % Jan-Dec ̶ Organic growth of
Slide 15: The decline in EBITA was caused by weak sales and lower gross margin
The decline in EBITA was caused by weak sales and lower gross margin – Results from acquisitions and cost-savings counteract EBITA bridge Q4 Highlights Q4 2024 308 • Weaker volumes, decreased 26 214 supplier bonuses, and adverse 1 16 -100 mix effects explain the -27 -10 decreased gross profit. EBITA
Slide 16: Decreased share of own brands and SME customers in Sweden
Decreased share of own brands and SME customers in Sweden – Both integrated and non-integrated companies Sweden Norway Finland SALES PER CHANNEL SALES PER CHANNEL 2% (0%) Non- SALES PER CHANNEL 18% (14%) integrated 20% (14%) Non-integrated ≈ 56% (62%) 23% (22%) Store business Non-integrated business
Slide 17: Deteriorated contribution margin in all countries
Deteriorated contribution margin in all countries – Continued negative customer segment and size mix but an improvement in SE in Q4 Sweden Norway Finland Standard assortment Own brands Mix Mix Store channel/SME Group GM% -0.2 p.p Group GM% -0.4 p.p Mix Mix Customer segment mix Group GM% -0.5 p.p Gro
Slide 18: Decreased EBITA in all countries
Decreased EBITA in all countries – Negative organic growth and unfavourable customer segment and size mix – acquisitions counteract Sweden Norway Finland MSEK MSEK 2 000 20 MSEK 500 800 10 8 1 500 15 400 600 8 6 300 1 000 10 6 400 4 4 200 500 5 200 2 2 100 0 0 0 0 0 0 Q4 2022 Q4 2023 Q4 2024 Q4 2022
Slide 19: Operating cash flow in Q4 is lower than last year due to lower EBITDA
Operating cash flow in Q4 is lower than last year due to lower EBITDA – Q4 is seasonally the strongest quarter Cash flow Highlights Q4 2024 • Lower cash flow from operating activities, 2024 2023 2024 2023 MSEK Oct-Dec ∆ Oct-Dec Jan-Dec ∆ Jan-Dec primarily due to lower EBITDA. ̶ Reduced inventory lev
Slide 20: Increased leverage, but still a solid financial position
Increased leverage, but still a solid financial position Overview of the financial position Highlights Q4 31 Dec 31 Dec • Ratio of net operational liabilities MSEK 2024 2023 to EBITDA (excl. IFRS 16) of 2.4 Non-current interest 3,121 2,624 bearing liabilities • Cash and unutilized granted credit fac
Slide 21: Performance in 2024 in relation to financial targets
Performance in 2024 in relation to financial targets 21
Slide 22: Performance in 2024 in relation to sustainability targets
Performance in 2024 in relation to sustainability targets 22
Slide 23: Agenda
AGENDA • This is Alligo • Highlights Q4 2024 • Update – Sales initiatives and Alligo’s welding offer • Financials • Summary and outlook • Q&A
Slide 24: Q4 2024 in summary
UPPDATERA UPPDATERA Q4 2024 in summary • The fourth quarter concluded an unusually challenging year ̶ Decline in sales was less than in the beginning of the year ̶ Signs the market situation is stabilising, albeit at a weak level • Signed nine acquisitions during 2024 – adding 747 MSEK in annual rev
Slide 25: Outlook 2025
UPPDATERA Outlook 2025 • Alligo’s market position remains strong • Continued focus on acquisitions in technology areas such as batteries and welding – creating synergies in the integrated business • Build for the future by improving and streamlining existing operations: ̶ Launch of new services and
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
APPENDIX 27
Slide 28: Revenue bridge fourth quarter 2024
Revenue bridge fourth quarter 2024 Revenue year-on-year Q4 +2,0% +6.8% 2 589 -3.4% 2 538 -0.2% -1.5% +0.4% Revenue Comparable Currency Number of New stores Other Revenue Q4 2023 stores in local effects working days units Q4 2024 currency 28
Slide 29: IFRS 16 effects on cash flow
IFRS 16 effects on cash flow 2024 2023 2024 2023 MSEK Oct-Dec Oct-Dec Jan-Dec Jan-Dec IFRS 16 effects on cash flow 117 121 405 365 from operations IFRS 16 effects on cash flow -117 -121 -405 -365 from financing activities 29
Slide 30: 2023 – six acquisitions signed, adding 330 MSEK in annual revenues
2023 – six acquisitions signed, adding 330 MSEK in annual revenues – as well as 80 employees and 8 stores Date Annual revenue Acquisition Product category signing (MSEK)* Employees Stores Kitakone Oy Workwear/Tools April 2023 34 8 1 Topline AB (70%) Workwear/Profile Clothing/Product Media May 2023 6
Slide 31: The origins of Alligo
The origins of Alligo The mail order Components & company Swedol Services (Momentum is established in Swedol is Group) is distributed Tyresö, Sweden. Swedol begins store listed on Momentum Group to shareholders and expansion phase with Nasdaq changes name to separately listed on 11 new stores Stockh
Slide 32: Five reasons to invest in Alligo
Five reasons to invest in Alligo 1 2 3 4 5 Market Scalable Own brands Sustainable Leader in the growth and platform a increase enterprise consolidation resilient foundation competitiveness an integrated process on customer for continued and part of the the Nordic segments growth profitability busine
Slide 33: Decreased share of own brands and SME customers in Sweden FY2024
Decreased share of own brands and SME customers in Sweden FY2024 – Only integrated companies Sweden Norway Finland SALES PER CHANNEL SALES PER CHANNEL SALES PER CHANNEL 68% (72%) 29% (26%) Store channel Store channel (SME) (SME) 32% (28%) 51% (53%) 49% (47%) Direct sales Direct sales Store channel 7
Slide 34: Decreased EBITA in all countries FY2024
Decreased EBITA in all countries FY2024 – Negative organic growth and unfavourable customer segment and size mix – acquisitions counteract Sweden Norway Finland MSEK MSEK MSEK 6 000 12 3 000 10 2 000 5 000 10 8 2 500 8 4 000 8 1 500 2 000 6 6 3 000 6 1 500 1 000 4 4 2 000 4 1 000 2 500 2 1 000 2 500
Slide 35: Read more at alligo.com/en/report/q4-2024
Read more at alligo.com/en/report/q4-2024