In 2024, Pamica Group’s net sales increased by 29 percent to SEK 4,628 million and adjusted EBITA increased by 33 percent to SEK 356 million, corresponding to an adjusted EBITA margin of 8 percent. In 2025, work will continue to streamline the Group’s companies to increase profitability, combined with structural measures to reduce the Group’s leverage to a level that is significantly lower than today’s level. The structural changes are expected to consist of both divestmentsand acquisitions.
The acquisitions are planned in a first step to be carried out by a company that is separate from Pamica Group, called Pamica 5 AB. The goal is to finance the newly started company with capital from investors in Pamica Group, external investors, reinvestments from sellers of companies that Pamica 5 acquires and bank financing.
Pamica Group and Pamica 5 are expected to enter into an agreement whereby the intention is for Pamica Group to acquire the companies in Pamica 5 over time, in the same way as previously done in four funds, through a non-cash issue and where Pamica Group has a pre-emptive right. This will require a decision/approval from the shareholders of Pamica Group and Pamica 5 and the lenders to Pamica Group. The overall objective of this agreement and other strategic measures is to increase the Group’s total EBITA margin, strengthen the portfolio companies where the Board and management of Pamica Group see that Pamica can add value and balance the portfolio, with a larger proportion of companies within the Industry segment and the Innovations segment.
Pamica Group’s management and board of directors assess that the combination of measures has the potential to increase net sales from the current forecast for 2025 of SEK 5,500 million to approximately SEK 6,000 million, the EBITA margin from just under 10% to just over 13% and reduce the debt ratio as of December 31, 2025 from the current forecast of just under 3 x adjusted EBITDA to just over 2 x adjusted EBITDA. Organic EBITA growth in 2025 is estimated to have the potential to amount to >10% and cash conversion to >80%.