Kjell Group (KJELL) Q4 2024 earnings summary

Executive summary

• Q4 net sales rose 1.5% year-over-year to 773.4 million SEK, with adjusted EBITA up 17.3% to 33.3 million SEK and net profit at 16.0 million SEK, despite a challenging home electronics market and full-year net loss of -19.9 million SEK.

• Strong customer traffic and operational initiatives, especially in Sweden and Norway, contributed to improved results, while Denmark saw temporary sales declines due to integration and restructuring.

• Strategic focus included integrating the Danish business onto a new e-commerce platform, investing in a new automated central warehouse, and expanding omnichannel and shop-in-shop concepts.

• Efficiency programs, cost control, and organizational restructuring were implemented, with further benefits expected in 2025.

• New shop-in-shop collaborations, notably with Eko Stormarknad, are expected to contribute 1–2% of 2025 sales, with 13 new concepts to open.

Financial highlights

• Q4 sales reached 773.4 million SEK, up 1.5% year-over-year; Sweden grew 2%, Norway 13.4%, Denmark declined 16.1%.

• Adjusted EBITA for Q4 was 33.3 million SEK (up from 28.4); full-year adjusted EBITA was 49.1 million SEK (down from 80.1).

• Gross margin decreased by 0.4 percentage points to 39.4% in Q4, mainly due to a higher share of external brands and product mix.

• Net profit for Q4 was 16.0 million SEK (up from 12.5); full-year net loss was -19.9 million SEK (down from profit of 12.4).

• Operating cash flow in Q4 was 142 million SEK, down from 157 million SEK year-over-year; core working capital increased mainly from higher inventory.

Outlook and guidance

• Focus for 2025 is on margin improvement, efficiency, and supply chain investments, with a streamlined organization and new financial targets: sales growth >5%, adjusted EBITA margin 6–8%, net debt/EBITDA <2x.

• Gradual market improvement is expected, supported by tax and interest rate cuts in the second half of the year.

• No dividend proposed for 2024; earnings to be carried forward.