FLSmidth's cement order intake decreased by 22 per cent in 2024, reflecting recent divestments and continued pruning of the product portfolio. Cement adjusted EBITA margin reached 9.1 per cent following the successful execution of strategic initiatives. The company's cement order intake decreased by 17 per cent compared to 2023 if excluding currency and divestment effects.
Meanwhile, the Mining Service order intake increased two per cent compared to 2023 reflecting continued stability of mining service market. Additional improvements in underlying profitability with Mining adjusted EBITA margin of 13.1 per cent. Group EBITA margin of 9.8 per cent and net result of DKK1030m (US$144m), the highest levels in more than a decade. Cash flow from operations totalled DKK640m.
FLSmidth Group CEO, Mikko Keto, comments: “This year’s annual report highlights the meaningful progress we have made in advancing our strategic initiatives, streamlining our operations and enhancing efficiency across the business. Thanks to these efforts, we have achieved strong improvements in the underlying profitability of both the mining and cement businesses.
"Additionally, we have made significant progress in winding down Non-Core Activities, reducing the backlog by 94 per cent since the establishment of the segment. These achievements are a testament to the hard work and dedication of our employees, and we can all be proud of what we have accomplished in the year. The results we have delivered in 2024 provide a solid foundation for the year ahead, as we continue our transformation and remain committed to delivering consistent performance through business excellence.”
Service revenue decreased by seven per cent mainly due to the effect from divestments. Products revenue decreased by 41 per cent driven by the effects from divestments as well as from the continued pruning of the product portfolio and exit from project-oriented business. Gross profit increased by 36 per cent to DKK 445m (DKK 328m in the 4Q23) corresponding to a gross margin of 40.8 per cent (23.5 per cent in the 4Q23). Excluding transformation and separation costs of DKK4m, the Adjusted EBITA margin was 8.5 per cent in the 4Q24. Including these items, the EBITA margin was 8.2 per cent compared to 7.4 per cent in the 4Q23.Group revenue decreased by 11 per cent compared to the 4Q23 (decrease of seven per cent if excluding currency effects and effects from divestments).
Results in 4Q24
Cement order intake decreased by 13 per cent compared to the 4Q23 (decrease of six per cent if excluding currency effects and effects from divestments). Service order intake decreased by 11 per cent primarily due to effects from divestments. Products order intake decreased by 18 per cent primarily as a result of divestments as well as the continued pruning of the product portfolio and exit from project-oriented business. Service and Products comprised 76 and 24 per cent of the total cement order intake in the quarter, respectively (74 and 26 per cent in the 4Q23, respectively).
