Desenio Group (DSNO) Q4 2024 earnings summary

Executive summary

• Net sales declined by 8.6% year-over-year to SEK 268.8 million in Q4, mainly due to weak purchasing power outside the Nordics.

• Adjusted EBITA margin improved to 20.1% in Q4 (12.8% in Q4 2023), with adjusted EBITA of SEK 54.1 million, driven by efficiency and product mix.

• Operating cash flow rose to SEK 48.1 million in Q4, up from SEK 29.6 million in Q4 2023.

• A term sheet for bond and capital restructuring was agreed, including a 75% bond write-off and 95% shareholder dilution, subject to approval.

• Johan Roslund was appointed as new CFO, effective January 2025.

Financial highlights

• Gross margin improved to 87.0% in Q4 (84.2% in Q4 2023), driven by favorable product mix.

• Adjusted EBITA for Q4 was SEK 54.1 million (SEK 37.7 million in Q4 2023); full-year adjusted EBITA was SEK 106.7 million.

• Cash and cash equivalents increased to SEK 115.6 million at quarter-end.

• Fulfilment and marketing cost ratios decreased year-over-year.

• Net debt increased to SEK 1,000.6 million at year-end.

Outlook and guidance

• Management is cautiously optimistic for 2025, expecting positive effects from decreased inflation and interest rate cuts.

• Cash conversion above 95% is expected to continue, with similar or higher cash build anticipated.

• For 2025, net sales growth is expected to be 0–5% and adjusted EBITA margin 11–14%.

• New long-term targets: organic annual net sales growth >5% and adjusted EBITA margin >15% over time.

• Value creation is anticipated if the negative sales trend reverses as consumer purchasing power strengthens.