Savaria Reports Impressive 2024 Financial Results and Growth
Savaria's Remarkable Progress in 2024
Savaria Corporation (TSX: SIS), a prominent player in the accessibility sector, has officially reported its impressive financial achievements for the fiscal year 2024. With a revenue of $867.8 million, reflecting a growth of $30.8 million or 3.7% from the previous year, the company showcased a robust recovery with strategic expansions and enhancements in operations.
Financial Highlights of 2024
Revenue Growth and Segments
The majority of the revenue increase was attributed to an organic growth of 3.7%, alongside a favorable foreign exchange impact of 1.4%. This surge was alongside divestitures which slightly offset the overall revenue performance. Despite these challenges, Savaria maintained a solid footing due to its strategic acquisitions.
Gross Profit and Operating Income
Gross profit soared to $321.7 million, an impressive 12.5% increase compared to the previous year, indicating a gross margin improvement to 37.1%. In parallel, operating income rose significantly by 16.6% to reach $84.1 million, reflecting enhanced operational efficiency.
Adjusted EBITDA and Earnings
The adjusted EBITDA climbed to $161.2 million, which translates to $2.25 per share, a notable increase of 24% year-over-year. Similarly, net earnings reached $48.5 million, or $0.68 per diluted share, marking a substantial improvement from the previous fiscal year.
Quarterly Insights on Q4 2024
Quarterly Revenue Analysis
In the fourth quarter alone, revenue was recorded at $223.3 million, reflecting an increase of $6.5 million or 3% year-over-year. The growth was fueled primarily by a combination of organic progress and the positive results from foreign exchange, despite losing the contributions from certain divestitures.
Segment Performance
The accessibility segment accounted for 76% of the Q4 revenue, totaling $170.3 million, although it experienced a slight contraction of 1.9%. In contrast, the patient care segment thrived with a remarkable 22.9% increase in revenue, reaching $53 million.
Looking to the Future
Anticipating Growth in 2025
The company is optimistic about its future, projecting revenue around $925 million for fiscal year 2025, driven by an expected growth of 5-8%. This growth is anticipated due to ongoing product innovations and a strong response from the market. The focus will not only be on revenue growth but also on improving profitability margins between 17% and 20%.
Enhancing Accessibility Solutions
In line with its commitment to broaden its reach, Savaria is launching innovative offerings, like the new Savaria Luma home lift to cater to aging individuals. This product aims to provide convenience and ease to users seeking alternatives to conventional stair lifts.
Environmental, Social, and Governance (ESG) Commitments
Savaria is dedicated to reducing its environmental impact while promoting social responsibility. The company recognizes the importance of sustainability in achieving long-term growth and consistently seeks to implement best practices across its operations.
Frequently Asked Questions
What are the key financial highlights for Savaria in 2024?
Savaria reported a revenue of $867.8 million, a gross profit of $321.7 million, and adjusted EBITDA of $161.2 million for the year.
How did Savaria perform in Q4 2024?
In Q4 2024, Savaria achieved a revenue of $223.3 million, up 3% from the prior year, mainly driven by growth in its Patient Care segment.
What is Savaria’s outlook for 2025?
Savaria forecasts revenue growth of about 5-8% for 2025, targeting approximately $925 million with an adjusted EBITDA margin between 17% and 20%.
What new products is Savaria launching?
The company is set to launch the Savaria Luma, a new home lift designed to provide a practical alternative for individuals seeking mobility solutions.
How does Savaria prioritize sustainability?
Savaria emphasizes minimizing its environmental footprint and enhancing its social governance practices as part of its commitment to sustainable growth.
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