Embellence Group (EMBELL) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales rose 6% year-over-year to SEK 202 million, with EBITDA/EBITA at SEK 28 million and margin up 1.7 points to 13.9%.

• Full-year sales grew 5% to SEK 778 million, with EBITDA/EBITA margin reaching 14.4% and net profit at SEK 57 million.

• Gross margin improved to 60.7% in Q4 and 59.9% for the year, driven by product mix and efficiency.

• Operating cash flow doubled to SEK 113 million for the year; net debt/EBITDA improved to 0.7.

• Brand focus, digital investments, and a new CEO joining May 2025 are central to future growth.

Financial highlights

• Q4 net sales: SEK 202 million (+6%); full-year: SEK 778 million (+5%).

• Q4 EBITDA/EBITA: SEK 28 million (margin 13.9%); full-year: SEK 112 million (margin 14.4%).

• Q4 gross margin: 60.7% (up 3 points); full-year: 59.9% (up 1.9 points).

• Q4 operating cash flow: SEK 38 million; full-year: SEK 113 million.

• Net profit for Q4: SEK 12 million (down from 15 million); full-year: SEK 57 million (up from 39 million).

Outlook and guidance

• Q1 2025 expected to be slower due to Artscape order phasing.

• Focus on DTC and Hospitality channels, with new product launches and efficiency projects planned.

• Long-term target: SEK 1 billion in sales by 2028 and EBITDA margin above 15%.

• Board proposes a dividend of SEK 1.25 per share, 50% of net profit.