Total revenue down 4%, recurring revenue up 19% in 2024

Nedap reports solid progress in its strategic transition in 2024, with recurring revenue and added value increasing despite challenging market conditions. While total revenue declined compared to a strong prior year, improved performance in the second half and continued growth in recurring revenue underline the company’s resilience and set the stage for renewed growth.

Key points

• Revenue for 2024 amounted to €251.6 million, down 4% from 2023.
• Recurring revenue rose by 19% and made up 40% of revenue (32% in 2023).
• Added value as a percentage of revenue increased to 71.5% (69.0% in 2023).
• Operating profit came in at €23.9 million (€27.3 million in 2023) with an operating margin of 9.5%(10.4% in 2023).
• Operating margin in the second half of 2024 was 10.5%, up from 8.7% in the second half of 2023.
• Dividend for the 2024 financial year has been set at €3.20 (€3.20 in 2023).

Nedap CEO Ruben Wegman: “Our revenue in the second half year of 2024 shows that market conditions are improving, while our full-year figures reflect the challenges we faced throughout the year. Revenue for 2024 was 4% lower than in 2023. This was in large part due to a strong comparable base in early 2023 and slow market conditions in Livestock, which persisted throughout much of 2024. We made targeted efforts to reduce inventory levels, tempered the hiring of new talent in 2024 and controlled our operating costs. Recurring revenue continued its upward trend, growing by 19%, and now accounts for 40% of total revenue. At our Capital Markets Day in November, our positioning as a leading Digital Twin Technology company and our Create & Scale strategy for driving organic growth, were well received.

In the second half of 2024, improved market sentiment in our key markets resulted in increased demand for our solutions. We expect this upward trend to continue and anticipate revenue growth across all four key markets in 2025, unforeseen circumstances notwithstanding.”

Outlook

In the second half of 2024 we began to see signs of improved market sentiment, although the speed of the recovery in the livestock market remains uncertain. For 2025, we expect revenue growth in each of our key markets, driven by our investments in Create & Scale solutions and the anticipated recovery of the livestock dairy market, unforeseen circumstances notwithstanding. We reiterate our Step Up! financial ambitions, including an EBIT margin growing toward 15%, albeit in 2026.

Read the full press release here.