Esprinet (PRT) Q4 2024 earnings summary

Executive summary

• Achieved strong FY2024 results with adjusted EBITDA up 8% to €69.5M and gross sales up 6% to €4.4B, outperforming the IT market in EMEA and Southern Europe and regaining profitability.

• Strengthened leadership in Southern Europe, expanded technology portfolio, and launched Zeliatech to drive digital and green transitions.

• Demonstrated resilience and profitability despite complex geopolitical and economic challenges.

• Reinstated/proposed dividend at €0.40 per share, reflecting improved financial stability and a payout ratio above 90%.

Financial highlights

• Adjusted EBITDA reached €69.5M (+8% year-over-year); gross sales grew 6% to €4.4B; gross profit margin stable at 5.54%.

• Adjusted EBIT was €46.2M (+5% year-over-year); net income improved to €21.5M from a €11.9M loss in 2023.

• Net financial position at -€36.2M post-IFRS 16, mainly due to lease liabilities and tax payment plans.

• Cash conversion cycle stabilized at 22 days, improving by 6 days year-over-year.

• Net equity rose to €389.2M from €367.4M.

Outlook and guidance

• 2025 market expected to see low to mid single-digit growth, with PC refresh cycle and end of Windows 10 support driving demand.

• EMEA AI spending forecasted to grow 35% in 2025; focus on AI, cloud, cybersecurity, and energy efficiency.

• Focus remains on profitable growth, working capital optimization, and return on capital employed.

• 2025 guidance to be announced with Q1 results in May.