Alfen N.V. (ALFNF) Q4 2024 Earnings Call Transcript

2025-02-13 09:29:44 ET

Alfen N.V. (ALFNF)

Q4 2024 Earnings Conference Call

February 13, 2025, 3:00 AM ET

Company Participants

Marco Roeleveld - Chief Executive Officer

Onno Krap - Chief Financial Officer

Michelle Lesh - Chief Commercial Officer

Conference Call Participants

Nikita Lal - Deutsche Bank

Thijs Berkelder - ABN AMRO ODDO BHF

James Carmichael - Berenberg

Paul de Froment - Bryan Garnier & Co.

Jeremy Kincaid - Van Lanschot Kempen

Thibault Leneeuw - KBC Securities

Presentation

Operator

Hello. And welcome to the Alfen 2024 Full Year Results. My name is Laura, and I will be your coordinator for today's event. Please note this call is being recorded and for the duration of the call your lines will be on listen-only mode. However, you will have the opportunity to ask questions at the end of the call. [Operator Instructions]

Today we have Marco Roeleveld, CEO; Onno Krap, CFO; and Michelle Lesh, CCO as our presenters.

I will now hand you over to your host, Marco Roeleveld to begin today's conference. Thank you.

Marco Roeleveld

Thank you Laura. Good morning and welcome to this Alfen webcast. We appreciate the fact that you have taken the effort to participate. This webcast and the questions that may come forward are handled by the management board of Alfen, as indicated by the moderator being Michelle Lesh, CCO; Onno Krap, CFO and myself, Marco Roeleveld, CEO.

In this webcast we will start with the highlights of 2024 followed by a short review of the business line. Next we will go in more detail regarding our financials of 2024 and lastly a significant part of this presentation will handle the strategy update, our outlook for 2025 in the context of our medium-term ambition.

We can continue with Slide 4 with the highlights of 2024. In line with the updated guidance during the Q3 results, the revenue for the full year of 2024 ended up at the lower end of our revenue bandwidth and amounted to €487.6 million. The adjusted EBITDA of 5.8% was in line with the updated guidance.

Our results in 2024 were impacted by headwinds across all three of our business lines. Lower EV subsidies resulted in a low demand for charging stations and a significant price decline of batteries resulted in a wrong decision cycle and low revenues, and a moisture issue as market solutions caused a big financial impact.

The free cash flow in 2024 was €21.4 million positive, compared to a negative cash flow in 2023 of €27.2 million. This positive cash flow exceeded our updated guidance, primarily driven by a reduction in inventory and time of Energy Storage projects.

We have updated our strategy in the second half of 2024 and have decided to enhance our focus on our core markets and to further optimize our product market approach. With the restructuring in the fourth quarter, we adjusted our cost base, adapting it to the new market conditions, and for 2025, a €13.1 million net cost base improvement was realized compared to 2024....

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