Summary of the 2024 interview with the President and CEO

In 2024, we have left the major structural changes to Trelleborg behind us and have focused entirely on developing the Trelleborg of the future. We are doing this by continuing to strengthen our leading positions in the carefully selected segments where we operate. Trelleborg has never before had such a high rate of investment

as it has now. We are investing purposefully to increase our presence in emerging

geographies by establishing new facilities in new countries, and also increasing capacity, improving efficiency and implementing new technologies in our existing operations. These investments, combined with continued bolt-on acquisitions,

will create an even more robust Group with higher growth and enhanced profitability.

Peter-Nilsson
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Countries with operations
40

Find closest location

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Number of employees
16,782

Work with us

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Reduction of CO2 emissions
55%

Read more about new climate target

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Earnings per share
16.74
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Return of Capital Employed
12%
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Sales SEK, M
34,170


Business concept

Trelleborg develops and offers a unique portfolio of solutions covering a broad range of applications – even the most complex ones.

 

Our offering

The core of Trelleborg’s product development is engineered polymer solutions that meet customer-specific requirements for critical applications. The Group’s solutions save energy and reduce emissions, eliminate noise and vibrations and extend the service life of end products. This improves the overall sustainability profile of its customers. Trelleborg also offers services supported by digital tools to make life easier and increase value for its customers. The combination of products and services offered to customers ensures a strong position for the Group across the value chain.

Key figures

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Sustainability
Trelleborg’s products and solutions have unique properties that protect the essential. They work with solutions that save energy and reduce emissions, eliminate noise and vibrations, and extend the service life of end products. This improves the overall sustainability profile of its customers.

Trelleborg works continuously to reduce the climate impact of its operations. Important steps along the way were the achievement of the previous targets 15 by 15, 20 by 20 and 50 by 25. In 2024, the science-based climate  target of reducing absolute carbon emissions (Scope 1 and 2) by 50 percent by 2030 was  also achieved.
 
In 2023, the decision was taken to  increase the use of renewable electricity at a  faster pace than planned. This could be implemented in all parts of the business and have a major positive impact. For 2024, the share of renewable electricity is 89 percent, which, together with energy efficiency improvements, was the main reason for achieving the Scope 1 and 2 targets during the year. As part of the Group’s Energy Excellence program, a partnership  with an external group of experts has provided important insights and documented effective activities that have reduced energy consumption. In 2025, Trelleborg will submit an application to the Science Based Targets initiative for new science-based targets for Scope 1 and 2 absolute emissions and thereby continue to reduce carbon  emissions.
sustainability-summary

Sustainability

Sustainability report summary 2024
Commentary on the consolidated income statements
A new strong year for Trelleborg. Despite challenging market conditions and an unsettled business environment, the Group successfully improved profitability and sales have been stable. Earnings and the margin were the highest to date for a full year. Net sales for continuing operations were in line with the preceding year. During the year, the rate of investment was high in both existing facilities and through new establishments in emerging geographies and strategically selected industry segments. Despite these extensive investments, the Group maintained a strong cash conversion ratio. During the year, the Trelleborg Medical Solutions business area acquired Baron Group, a prominent company in the manufacturing of advanced precision silicone components for medical devices.
                                                                                                                                                                                                                           
               
SEK million
            		               
2024
            		               
2023
           
Net sales 34,170 34,286
Cost of goods sold -21,730 -22,195
Gross profit 12,440 12,091
Selling expenses -2,529 -2,526
Administrative expenses -3,379 -3,123
Research & development costs -710 -697
Other operating income1 596 792
Other operating expenses1 -821 -1,017
Share of profit in associates 5 -2
EBIT (excl. items affecting comp.) 5,602 5,518
Items affecting comparability -315 -614
EBIT 5,287 4,904
Financial income2 235 636
Financial expenses -532 -743
Profit before tax 4,990 4,797
Income tax3 -1,254 -1,316
Net profit (continuing operations) 3,736 3,481
Net profit (discontinued operations4) – 6,593
Net profit (Group) 3,736 10,074
 - shareholders of the Parent Company 3,737  10,075 
 - non-controlling interests  -1  -1 


1 Other operating income and expenses are impacted by exchange rate differences recognized gross.
2 For 2023, includes non-recurring financial income of SEK 218 M (SEK 173 M after tax) attributable to the interest-rate hedges terminated in conjunction with the divestment of the Group’s tire operation.
3 For 2023, includes a non-recurring tax expense of SEK100 M related to a review of the Group’s legal structure following the divestment of the Group’s tire operation.
4 For 2023, includes the capital gain from divestment of the Group’s tire and printing blanket operations.

 

 

Commentary on the consolidated balance sheets
The Group’s total capital employed for continuing operations was SEK 49,381 M (39,768), representing an increase of SEK 9,613 M. The change in working capital during the year, excluding acquisitions and exchange rate effects, was SEK 380 M (–842). The net change related to the year’s investments, depreciation, amortization, and impairment of property, plant and equipment and intangible assets, including right-of-use assets, amounted to SEK 624 M (405), excluding exchange rate effects. Participations in associated companies increased by SEK 3 M (–6). Structural changes from units acquired during the year increased capital employed by SEK 5,820 M (127), largely attributable to the acquisition of Baron Group. Exchange rate effects increased total capital employed by SEK 2,786 M (–1,225) during the year.
                                                                                                                                                                                                                                                                                                                                   
               
SEK million
            		               
2024
            		               
2023
           
Assets
 Non-current assets    
Property, plant and equipment 9,306 7,757
Right-of-use assets 1,758 1,538
Goodwill 25,376 20,491
Other intangible assets 7,163 5,333
Participations in associated companies 57 54
Financial non-current assets 101 165
Deferred tax assets 542 498
Total non-current assets 44,303 35,836
Current assets    
Inventories 5,733 5,119
Current operating receivables 7,182 6,440
Current tax assets 1,048 853
Interest-bearing receivables 80 709
Cash and cash equivalents 2,162 10,546
Total current assets 16,205 23,667
Total assets 60,508 59,503
Equity and Liabilities
 Equity    
Share capital 2,620   2,620
 Other capital contributions 226  226 
 Other reserves 6,411  4,684 
 Profit brought forward 28,571  24,117 
 Net profit for the year 3,737  10,075 
 Total  41,565 41,722 
 Non-controlling interests  4 5 
 Total equity 41,569  41,727 
 Non-current liabilities    
 Interest-bearing non-current liabilities 5,474  5,344 
 Other non-current liabilities 57  71 
 Pension obligations 447  346 
 Other provisions  403 447 
 Deferred tax liabilities 1,405  799 
 Total non-current liabilities 7,786  7,007 
 Current liabilities    
 Interest-bearing current liabilities  3,087 2,953 
 Current tax liabilities  1,250  1,241
 Other current liabilities 6,452  6,080 
 Other provisions 364  495 
 Total current liabilities 11,153  10,769 
Total equity and liabilities 60,508 59,503
Commentary on the consolidated cash flow statements
Operating cash flow for continuing operations amounted to SEK 5,011 M (5,063). Cash flow was positively affected by the higher earnings generation. The rate of investment was higher  than in the preceding year, and amounted to SEK 1,883 M (1,678), an increase of 12 percent. Changes in working capital impacted operating cash flow by SEK –352 M (–38). Cash conversion for the year amounted to 89 percent (92). Operating cash flow from discontinuing operations in 2023 pertains to the Group’s divested tire and printing blanket operations. During the year, payments related to items affecting comparability amounted to SEK –334 M (–479). After deductions for financial items of SEK –365 M (–325), and taxes paid of SEK–1,395 M (–1,407), free cash flow amounted to SEK 2,917 M (2,526), corresponding to SEK 12.28 per share (10.09). In 2024, five acquisitions were carried out that impacted net cash flow for the year by SEK –5,496 M (–447). There were no divestments in 2024. The comparison figures from the preceding year included effects from the divestment of the Group’s tire and printing blanket operations, with an aggregate impact of SEK 26,462 M. The dividend to shareholders amounted to SEK –1,617 M (–1,524) and the repurchase of own shares for the year was SEK –4,127 M (–3,880). Net cash flow amounted to SEK –8,323 M (23,137). 
                                                                                                                                                                                                                                                                                                                                                                                           
               
SEK million
            		               
2024
            		               
2023
           
Operating activities
EBIT incl. participations in associated companies 5,287 4,904
 Adjustment for items not included in operating cash flow:    
Depreciation of property, plant, and equipment 973 924
Depreciation of right-of-use assets 365 365
Amortization of intangible assets 618 539
Impairment of property, plant and equipment and right-of-use assets -3 38
Impairment of intangible assets 2 3
Dividend from associated companies 1 9
Participations in associated companies and other non-cash items -8 -162
Capital loss/gain on divested operations – 87
Interest received 199 381
Interest paid -566 -848
Other financial items 2 265
Tax paid -1,395 -1,266
Cash flow from operating activities before changes in working capital 5,475 5,239
 Cash flow from changes in working capital    
Change in inventories 46 122
Change in operating receivables 52 -262
Change in operating liabilities -496 156
Cash flow from operating activities 5,077 5,255
Investing activities
Acquired units -5,496 -447
Divested/discontinuing operations – 135
Gross capital expenditures for property, plant and equipment -1,747 -1,529
Gross capital expenditures for intangible assets -136 -149
Sale of non-current assets 70 30
Cash flow from investing activities -7,309 -1,960
Financing activities
New/utilized loans 4,056 12,515
Amortized loans -4,150 -19,942
Amortized lease liabilities -347 -465
Repurchase of own shares -4,127 -3,880
Dividend paid – shareholders of the Parent Company -1,617 -1,524
Cash flow from financing activities -6,185 -13,296
Total cash flow from continuing operations -8,417 -10,001
Total cash flow from discontinuing operations – 15,884
Cash flow for the period, Group -8,417 5,883
 Cash and cash equivalents    
Opening balance from continuing operations, January 1 10,546 3,924
Opening balance from discontinuing operations, January 1 - -835
 Exchange rate differences  33  -96
Cash and cash equivalents, closing balance 2,162 10,546

Download the Annual Report 2024

Trelleborg’s performance was strong in 2024. During the year, the pace of capital expenditure was high to expand and develop existing facilities and to build new ones from the ground up. The Group completed five acquisitions and signed an agreement for one more during the year.

Annual report 2024
Cover of Trelleborg's Annual report 2024