IEK GROUP announces audited consolidated financial results according to IFRS for the 12 months of 2024.
The company's revenue amounted to 51.4 billion rubles, exceeding the 2023 figure by 15% due to the expansion of the assortment, increase in the volume of products sold, and growth in the average bill following the growth in sales of premium products and price indexation against the backdrop of inflationary pressure.
- As a result of M&A and R&D activity, the number of the company's production sites increased from 7 to 10, the IEK GROUP assortment exceeded 39 thousand items by the end of 2024 compared to over 30 thousand items at the end of 2023.
- The largest growth drivers and directions in the revenue structure traditionally remained low-voltage equipment (LVE) and universal power transmission systems (UPTS).
In 2024, the share of high and medium segment products in the revenue structure grew by 1.6 p.p. and amounted to 45.6%. The company continues to maintain a strategic focus on strengthening positions in the premium segment, distinguished by product functionality, the possibility of integration into complex systems, in particular:
- IEK GROUP presented innovative products such as the FORMAT PRO low-voltage switchboard (LVSB) and the FORTE&PIANO line of wiring devices.
- The company also increased sales of premium protection and switching devices under the ARMAT trademark, MASTERIEK electrical products, and UNIONIEK enclosures for electrical equipment.
For 2024, revenue growth outpaced the growth of the company's target markets by more than two times: key segments of electrical, lighting, telecommunications equipment, and solutions for industrial automation, in which IEK GROUP operates, according to B1 data for 2024, collectively reached 642 billion rubles compared to 610 billion rubles the year before (+6% y/y). According to the B1 forecast, the volume of the company's target market will reach 1.16 trillion rubles by 2030, and the average annual growth rate will accelerate and amount to 10%.
The EBITDA indicator grew by 42% in 2024 compared to the 2023 figure to 7.8 billion rubles, including due to profit from the sale of associated companies.
Adjusted EBITDA[1] amounted to 5.0 billion rubles. The decrease in this indicator compared to 2023 is associated with growth in logistics and payroll expenses against the backdrop of large-scale investments in modernization and business expansion, the effect of which will be reflected in the holding's future cash flows.
- In the reporting period, the company emphasized product localization, expansion of logistics infrastructure, and production capacities. In 2024, IEK GROUP acquired 20,000 sq.m. of industrial space for new production in the city of Balabanovo, Kaluga region, expanded the geography of logistics centers with facilities in Yekaterinburg and Rostov-on-Don, continued construction of the lighting cluster in Kazan, as well as integration and modernization of assets acquired in 2023 from Legrand Group.
- The mentioned initiatives were reflected in the growth of operating expenses while allowing the company to form a foundation for long-term business scaling by increasing the availability of a wide product line for clients across the country.
Net profit grew by 12% and amounted to 3.2 billion rubles.
The net debt to adjusted EBITDA ratio was 2.7x, reflecting the growth of borrowed capital attracted for implementing investment activities, including for purchasing and constructing production sites, as well as an increase in inventories due to the opening of new logistics centers.
- In March 2025, the company placed bond issue series 001P-03. The attracted funds were directed to restructuring the existing credit portfolio and improving debt servicing conditions. As of April 2025, IEK GROUP has two bond issues in circulation with a total nominal volume of 4 billion rubles, with the share of retail demand in applications at the primary placement being 36% and 35% respectively.
- The company is assigned a high credit rating of ruA- from Expert RA. The current level of debt burden is comfortable for the company; further debt accumulation in 2025 is not planned by IEK GROUP.
On the prospects of IEK GROUP's target markets
The volume of the market for electrical, lighting, telecommunications equipment, and solutions for industrial automation, in which IEK GROUP operates, amounted to 642 billion rubles according to the results of 2024, according to the B1 industry study. By 2030, it may reach 1.16 trillion rubles, demonstrating an average annual growth rate (CAGR) of about 10%, which is confirmed by B1 analysis. The main growth factors are systematic import substitution, growth of capital investments in engineering infrastructure, digitalization of industry, and construction of new production facilities, logistics centers, and utility facilities.
One of the key market segments is industrial automation, where IEK GROUP develops solutions based on MasterSCADA and DataGreen. In 2024, the volume of this segment is estimated at 83 billion rubles, and by 2030, growth to 207 billion rubles is forecasted, corresponding to a CAGR of 16.5%, according to B1 data. Demand growth is ensured by the transition to domestic SCADA platforms, IoT implementation, production digitalization, and Russian companies moving to Industry 4.0 standards.
The telecommunications equipment segment (including solutions for data centers, cabinets, cooling systems, fiber-optic components) amounted to about 99 billion rubles in 2024 and, according to forecasts, will reach 202 billion rubles by 2030 (CAGR 12.5%), according to B1 data. Development is associated with the implementation of national digital initiatives, growth in the number of distributed computing capacities, and the departure of foreign manufacturers. IEK GROUP expands in this segment due to DataGreen products, telecom solutions, and enclosures.
The electrical equipment (LVE, UPTS) and lighting segments form the basis of IEK GROUP's business. According to B1 estimates, they occupy the largest share in the demand structure - its aggregate volume is about 460 billion rubles in 2024. Key drivers: the program for modernizing the electric grid, steady demand from housing and industrial construction, as well as the trend of replacing imported products with local premium solutions. According to the B1 industry study, the volume of these segments may reach 750 billion rubles by 2030 with an average annual growth rate of about 8.5%.
In all presented segments, IEK GROUP has successfully replaced foreign players who left the Russian market in 2022.
[1] The "Adj. EBITDA" indicator represents profit before taxation, interest expenses, depreciation of fixed assets and amortization of intangible assets, excluding factors not related to operating activities and having an irregular / one-time nature, such as profit from the sale of associated companies.