AS MADARA Cosmetics (MDARA) H2 2024 earnings summary

Executive summary

• Achieved revenue of EUR 21.52 million in 2024, representing 11% like-for-like growth after adjusting for divestments, with a strategic focus on the core MADARA brand and divestments of MOSSA and Self-Named/SELFNAMED.COM to streamline operations and resources.

• Germany became the largest export market, with 15% growth and significant B2B and e-commerce expansion; France and Scandinavia also saw strong growth and onboarding of new customers.

• Launched new product lines, including a retinol alternative (EUR 1 million revenue), talc-free mineral powders, and a new men’s line, all receiving international awards and driving 19% growth in the makeup segment.

• Management reinforced teams in operations, sales, e-commerce, and data analytics, including new hires from Printful.

• Divestments were structured as win-win deals, with ongoing manufacturing and R&D agreements, supporting continued revenue streams and focus on private label manufacturing.

Financial highlights

• Revenue reached EUR 21.52 million, up 11% like-for-like and 6.4% unadjusted year-over-year.

• Record EBITDA of EUR 6.95 million (32% margin) and pre-tax profit of EUR 6 million, both including one-time gains from divestments; adjusted EBITDA was EUR 2.49 million (12% margin) and adjusted pre-tax profit EUR 1.55 million.

• Net profit for the period was EUR 5.46 million, up from EUR 1.60 million in 2023, reflecting one-time gains from asset sales.

• Gross profit rose 5% to EUR 14.08 million, with gross margin steady at 65%.

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

Outlook and guidance

• Management targets at least 10% revenue growth for 2025, aiming for EUR 23.67 million, with a focus on innovation, online user acquisition, expansion in strategic retail channels, and entry into new geographies and channels such as TikTok Shop.

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