Year-end report 2024

OCTOBER – DECEMBER 2024

• Net sales amounted to MSEK 283.8 (311.2).
• Net sales declined -9% (-9).
• Adjusted EBIT amounted to MSEK 3.3 (-8.3).
• The adjusted EBIT margin amounted to 1.2% (-2.7).
• EBIT amounted to MSEK 3.3 (-0.1).
• Net income was MSEK -1.3 (0.1).
• Loss per share amounted to SEK -0.03 (0).

JANUARY – DECEMBER 2024

• Net sales amounted to MSEK 1,152.0 (1,369.9).
• Net sales declined 16% (-1).
• Adjusted EBIT amounted to MSEK -7.2 (42.9).
• The adjusted EBIT margin amounted to -0.6% (3.1).
• EBIT amounted to MSEK -55.6 (55.1).
• Non-recurring items of MSEK 48.4 were charged to EBIT (strengthened the preceding year by MSEK 8.2).
• Net income was MSEK -60.1 (31.3).
• Loss per share amounted to SEK -1.20 (earnings: 0.63).

• The Board proposes a dividend of SEK 0 per share (0).

CEO JONAS KLARÉN’S COMMENTS ON THE QUARTER

Net sales in the fourth quarter amounted MSEK 284 (311), a year-on-year decline of 9% or MSEK 27. GARO Electrification reported growth of 2%, while sales for the GARO E-mobility business area were down MSEK 32. Net sales for the full-year 2024 amounted to MSEK 1,152 (1,370), down 16% compared with the year-earlier period.
The fourth quarter has reminded us once again of the core of our operations, our dedicated employees, our values, our history and strong foundation in Electrification. GARO is nothing without the commitment of its employees and the expertise and willingness to develop that they demonstrate every single day. Thanks to them, we have built a stable platform over the years while creating opportunities for innovation and growth in areas such as E-mobility.
Our operations in Ireland trended positively. By broadening our product program, we have improved sales and profitability. In this sense, our local team, with support of the Group, has demonstrated a great ability to adapt and improve results.
The UK remains a market that requires large volumes to achieve desired profitability. The pressure on pricing is clear, but we implemented important organization improvements during the year to  meet such challenges. With a strengthened focus on sales and our values as guiding principles, we are looking forward to further developing the operations.
Adjusted EBIT amounted to MSEK 3 (-8) for the quarter, with the completed cost savings beginning to take effect to offset lower sales.
Adjusted EBIT for the full-year 2024 amounted to MSEK -7 (43), charged with a non-cash impairment of MSEK 48 (MSEK 8 of a non-recurring nature that improved net earnings in 2023).

GARO ELECTRIFICATION
Sales in GARO Electrification amounted to MSEK 222, a year-on-year growth of 2% or MSEK 5. The Electrification business area is and will remain our stable base, and the area posted growth in the fourth quarter. The stable trend in Electrification and deliveries to data centers did not contribute to earnings but also strengthened our position as a reliable partner in the market.

GARO E-MOBILITY
Sales in GARO E-mobility amounted to MSEK 62, down 34% or MSEK 32 compared with the year-earlier quarter. The E-mobility market continues to be challenging but is an important market for our future. Competition is intensifying, but we demonstrated during the quarter that we are able to hold our own through quality, customer focus and innovation. The agreement with Onepark and the installations at Ørland Main Air Station in Norway are clear examples of how our products and our team are creating long-term value. The previously announced action program in the business area was completed during the quarter and the number of employees in the business area has reduced. The program is set to achieve full effect in the first quarter of 2025.

SUMMARY OF BECOMING NEW PRESIDENT AND CEO
As newly appointed President and CEO of GARO, I am looking forward to continuing to develop our operations with great anticipation. With my background in the energy and power supply industry, I am convinced that I can be a positive force for GARO’s continued growth and improved profitability. Both of GARO’s business areas play a key role in the ongoing electrification and transition toward a more sustainable society. Our operations have a strong foundation and I am looking forward, together with our committed employees, to taking on the challenges and growth opportunities that a changing world can offer.
We enter 2025 with pride in our base in Electrification and the stability and expertise this provides us with, exemplified by our E-mobility initiatives. It is this stable foundation that facilitates our journey toward new goals and challenges, and we are continuing to build with a strong conviction that our employees and values are our greatest asset.

MARKET CONDITIONS
We expect the E-mobility market to remain cautious in the short term. In the long term, we anticipate a continued strong trend with further expansion of charging infrastructure with the market growing structurally in line with the number of plug-in vehicles. Housing construction in the Nordic region is expected to recover gradually in 2025. Demand for other commercial and public sector construction, combined with renovation requirements and energy efficiency, remains favorable. The Riksbank’s interest-rate cuts are expected, together with fiscal stimulus, to have a positive impact on housing construction and  investment willingness in Sweden. All in all, we have a positive view of long-term market conditions, mainly driven by growth in charging infrastructure and its requirements for power supply as well as by the recovery of housing construction.
Jonas Klarén
President and CEO

ANNUAL GENERAL MEETING

The 2025 Annual General Meeting will take place on 14 May 2025 in Hillerstorp. Please see www.garogroup.se for more information
 
For more information, please contact:
Jonas Klarén, CEO: +46 (0)70 765 90 34
Helena Claesson, CFO: +46 (0)70 676 07 50

Read the full report here.

This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on February 21, 2025 at 8:30 a.m. CET.

GARO AB (publ) Corp. Reg. No. 556071–7772 is a company that develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. GARO’s customer offering is to provide complete solutions in the product areas of Electrical distribution products, E-mobility, Project business & Temporary Power with a focus on electrical safety, user-friendliness and sustainability. GARO was founded in 1939, has its head office in Gnosjö and is today an international company with operations in several countries. The company’s production units in Sweden are located in Gnosjö and Hillerstorp, as well as in Szczecin, Poland. GARO is listed on Nasdaq Stockholm under the ticker name GARO. For more information, see www.garo.se