RVRC (RVRC) Q4 23/24 earnings summary

Executive summary

• Net sales grew 18% year-over-year to SEK 1,840 million, with double-digit growth in all regions and continued profitability despite challenging market conditions.

• Q4 net sales reached SEK 407 million, up 13% year-over-year, with Rest of World up 18%, DACH up 13%, and Nordics up 7%.

• Maintained industry-leading profitability and increased market share in several markets.

• Board proposes a 40% higher dividend of SEK 1.20 per share, reflecting robust cash flow and financial position.

• Share buyback program initiated, with SEK 97 million distributed via buybacks and SEK 97 million via dividends in the year.

Financial highlights

• Full-year EBIT reached SEK 386 million, up 24% year-over-year, with an EBIT margin of 20.9%.

• Q4 gross margin was 71.9%; full-year gross margin was 71.3%.

• Adjusted EBIT margin for the year: 21.1%.

• Net cash position at year-end was SEK 282 million, with an unused SEK 600 million credit facility.

• Inventory at quarter-end was SEK 448 million, with SEK 362 million in warehouse.

Outlook and guidance

• New long-term targets: annual sales growth of 20% and adjusted EBIT margin of 20% for the next three years.

• Growth continued into July, but Q1 performance will depend on late August and September sales due to seasonality.

• Market expected to stabilize over time; current environment remains challenging with declining industry sales.