AS MADARA Cosmetics (MDARA) H2 2024 earnings summary

Executive summary

• 2024 featured a strategic focus on the core MADARA brand, with divestments of MOSSA and Self-Named/SELNANMED.COM to streamline operations and unlock growth in private label manufacturing.

• Both divestments were structured as win-win deals, with MADARA retaining manufacturing and R&D for the sold brands, ensuring ongoing revenue streams.

• Management emphasized sustainable, profitable growth, diversification across geographies and channels, and reinforced e-commerce, data analytics, and international sales teams.

• Launched new product lines, including a retinol alternative, men's skincare, and expanded makeup, driving 19% growth in the makeup segment.

• Expanded in key European markets, especially Germany, France, and the Nordics.

Financial highlights

• Revenue reached EUR 21.52 million, up 11% like-for-like after adjusting for divestments, or 6.4% unadjusted year-over-year.

• Gross profit rose 5% year-over-year to EUR 14.08 million; gross margin steady at 65%.

• Record EBITDA of EUR 6.95 million (32% margin) and pre-tax profit of EUR 6 million, including one-time gains from divestments; EBITDA was EUR 2.49 million (12% margin) excluding one-time items.

• Net profit for the period was EUR 5.46 million, compared to EUR 1.60 million in 2023, boosted by one-time gains from asset sales.

• Strong liquidity with cash at EUR 8.6 million and current ratio at 6.3x.

Outlook and guidance

• Minimum revenue growth target for 2025 is set at 10% like-for-like, with guidance at EUR 23.67 million, aiming to outperform the industry’s expected 6% CAGR.

• Focus areas for 2025 include accelerated online user acquisition, expansion in strategic retail channels, entry into new geographies and channels such as TikTok Shop, and prioritizing innovation.

• Gross margin and sales/admin cost ratios are budgeted to remain similar to 2024.