“Öresund’s Strategic Shift Towards Profitable Companies Pays Off in 2024”
Nicklas Paulson, the CEO of Öresund, recently announced the company’s financial results for 2024, highlighting a focus on cash-flow positive and profitable companies that pay dividends. This shift in strategy has led to an increase in the company’s net asset value, outperforming the SIX Return Index by 0.1%. With a total of 17 holdings in its portfolio, Öresund has seen a significant improvement in its stock price, rising by 13% in the last 12 months.
One of Öresund’s key investments, Bahnhof, exemplifies the company’s emphasis on profitability over growth, with Paulson stressing the importance of investing in companies that generate sustainable returns. While some investments, like Catena Media, have faced challenges, Öresund remains committed to maximizing shareholder value by focusing on larger, more profitable holdings.
In addition to its investments in established companies like Handelsbanken and Ericsson, Öresund also holds significant stakes in Bilia and Scandi Standard, where the company plays an active role in shaping the strategic direction. Despite challenges in the automotive industry, Paulson remains optimistic about Bilia’s prospects, citing the potential for increased car sales and service agreements in the coming years.
Another standout investment for Öresund is Scandi Standard, a leading poultry company that has undergone a successful turnaround under new leadership. Despite facing competition from Grupo Lusiaves, a Portuguese family-owned business, Öresund views the collaboration positively and continues to invest in Scandi Standard’s growth.
Looking ahead, Paulson acknowledges the uncertainties in the global economic landscape, particularly with factors like Trump’s policies and trade tariffs. However, he remains confident in Öresund’s ability to navigate these challenges by identifying strong companies with resilient management teams.
Overall, Öresund’s strategic shift towards profitable investments and dividend-paying companies has proven to be a successful strategy, positioning the company for continued growth and value creation in the years to come.