New Nordic Healthbrands (NNH) Q4 2024 earnings summary

Executive summary

• Net sales increased by 4.9% in Q4 2024 to SEK 149.6 million and by 3.1% for the full year to SEK 550.3 million, with organic growth in all regions except the Nordics, which rebounded in Q4.

• Gross margin declined to 62.8% in Q4 (from 64.6%) and to 64.5% for the year (from 65.2%), mainly due to higher distributor sales and product mix changes.

• Operating profit improved to SEK 1.0 million in Q4 (from -5.9 million) but decreased to SEK -4.4 million for the year (from -3.2 million), with no non-recurring costs in 2024.

• Profit after tax was SEK 1.9 million in Q4 (from -5.7 million) and SEK -7.7 million for the year (from -6.2 million), with EPS of SEK 0.31 in Q4 and SEK -1.24 for the year.

• Cash flow from operating activities was SEK 11.2 million in Q4 (up from SEK 9.9 million) but SEK -5.4 million for the year (down from SEK 28.0 million).

Financial highlights

• Q4 net sales: SEK 149.6 million (+4.9% YoY); full year: SEK 550.3 million (+3.1% YoY).

• Q4 gross margin: 62.8% (down from 64.6%); full year: 64.5% (down from 65.2%).

• Q4 EBITDA: SEK 2.0 million (from -5.2 million); full year EBITDA: SEK -1.8 million (from -1.3 million).

• Q4 operating profit: SEK 1.0 million (from -5.9 million); full year: SEK -4.4 million (from -3.2 million).

• Q4 profit after tax: SEK 1.9 million (from -5.7 million); full year: SEK -7.7 million (from -6.2 million).

• Cash and cash equivalents at year-end: SEK 15.2 million (from SEK 13.8 million).

• Net debt increased to SEK 24.0 million (from SEK 15.0 million); equity ratio at 40.6% (from 42.6%).

Outlook and guidance

• Management expects continued organic growth and improved profitability in 2025, with a focus on innovation, marketing, and gross margin improvement.

• No further inventory reductions expected at major Nordic retailers in 2025; positive outlook for US and Canadian markets.

• Restructuring in Kazakhstan and Benelux expected to benefit results in 2025.