2024 Annual Reports: Strategy Execution Drives Financial Performance

In the dynamic world of finance, the execution of strategic initiatives often determines a company's success or failure. The 2024 annual reports of several prominent companies, including Nexans, North Media, FLSmidth, and ING, provide a compelling narrative of how strategic execution can significantly impact financial performance. Let's delve into the key takeaways from these reports and understand the lessons they offer for future strategy implementation.

Nexans: A Model of Strategic Execution

Nexans, a global leader in cable systems, demonstrated an exceptional ability to execute its strategic initiatives in 2024. The company reported standard sales of €7.1 billion, up +8.7% on a reported basis and +5.1% organically. This growth was driven by a +13.0% organic increase in its Electrification businesses, reflecting early-bird investment and a focus on value-added solutions. The Q4 2024 standard sales of €1.9 billion were up +8.3% organically, driven by all businesses.

Nexans achieved an all-time high adjusted EBITDA of €804 million, up +21.0% year-on-year, and an adjusted EBITDA margin at 11.4%. The company also reported an outstanding normalized free cash flow at €454 million and 56% normalized cash conversion. The ROCE in Electrification businesses outperformed at 26.3%, and net income was €283 million, up +27% versus 2023. The proposed dividend for 2024 was €2.60 per share, up +13%.

Christopher Guérin, Nexans’ Chief Executive Officer, emphasized the success of their structural transformation and long-term strategic execution, stating, “In 2024, Nexans once again demonstrated its ability to deliver profitable and sustainable performance in a dynamic market environment. The Group set a new financial record, underscoring the success of its structural transformation and long-term strategic execution.”



North Media: Challenges in Execution

North Media's 2024 annual report highlighted the challenges faced during the execution of its strategic initiatives. The company's efforts were primarily centered on integrating SDR, Sweden’s largest private distributor of printed matter and local newspapers, the continued transformation of BoligPortal, the establishment of MineTilbud as an independent company, and the divestment of the commercial activities of Ofir. The integration of SDR proved more complex and costly than originally assumed, resulting in a write-down of the value of SDR by DKK 155m.

North Media’s revenue and EBIT fell short of the most recent guidance for 2024. The company reported a revenue of DKK 1,315-1,340m, EBITDA of DKK 140-160m, and EBIT of DKK 65-85m. The Board of Directors proposed to the shareholders at the Annual General Meeting that no dividend be paid for 2024.

Group CEO Lasse Brodt commented, “In 2024, we were fully focused on executing our business strategies, and this affected our financial performance. Our efforts were primarily centred on integrating SDR, Sweden’s largest private distributor of printed matter and local newspapers, the continued transformation of BoligPortal, the establishment of MineTilbud as an independent company and the divestment of the commercial activities of Ofir. The integration of SDR proved more complex and costly than originally assumed. Coupled with a significantly lower print volume in the annual agreements signed for 2025, this has resulted in a write-down of the value of SDR by DKK 155m. This is obviously unsatisfactory, however, we remain confident that our long-term plan for SDR, including the implementation of automated packing, is the right one.”

FLSmidth: Strategic Initiatives Pay Off

FLSmidth's 2024 annual report showcased the company's strategic initiatives and their impact on financial performance. The Mining Service order intake increased by 2% compared to 2023, reflecting continued stability of the mining service market. The Cement order intake decreased by 22% due to recent divestments and continued pruning of the product portfolio. The Mining Adjusted EBITA margin was 13.1%, and the Cement Adjusted EBITA margin was 9.1%. The Group EBITA margin was 9.8%, and the net result was DKK 1,030m, the highest levels in more than a decade. The company also reported better-than-expected cash flow performance with cash flow from operations of DKK 640m.

FLSmidth Group CEO, Mikko Keto, stated, “This year’s annual report highlights the meaningful progress we have made in advancing our strategic initiatives, streamlining our operations and enhancing efficiency across the business. Thanks to these efforts, we have achieved strong improvements in the underlying profitability of both the Mining and Cement businesses.”

ING: Strong Financial Performance

ING's 2024 annual report highlighted the company's strong financial performance and its commitment to sustainability. The company reported a solid year on all counts in 2024, delivering on its promises based on a very strong financial performance. The dedication of more than 60,000 colleagues in 36 countries serving customers worldwide was highlighted as a key factor in this success.

ING's ESG rating by MSCI was reconfirmed as 'AA' in August 2024 for the fifth year. As of December 2023, in 'Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. The current ESG Risk Rating is 17.2 (Low Risk).

Lessons for Future Strategy Implementation

1. Alignment of Execution with Strategy: Effective execution is crucial for translating strategic plans into tangible results. Companies like Nexans demonstrated that a strong focus on execution can lead to significant financial and operational improvements.

2. Adaptability and Flexibility: Companies must be prepared to adapt their strategies based on execution challenges. North Media's experience with SDR integration highlights the importance of being flexible and responsive to unforeseen obstacles.

3. Resource Allocation: Proper allocation of resources is essential for successful execution. FLSmidth's focus on winding down non-core activities and improving profitability underscores the need for strategic resource management.

4. Leadership and Accountability: Strong leadership and a culture of accountability are vital for driving execution. Nexans' leadership emphasized the importance of creating long-term value for stakeholders, which was reflected in their financial performance.



In conclusion, the 2024 annual reports of Nexans, North Media, FLSmidth, and ING provide valuable insights into the impact of strategic execution on financial performance. These companies' experiences highlight the importance of aligning execution with strategic planning, being adaptable, allocating resources effectively, and maintaining strong leadership and accountability. These lessons can guide future strategy implementation, ensuring that companies can achieve their strategic objectives and deliver sustainable performance.