Wetteri (WETTERI) Q4 2024 earnings summary

Executive summary

• Revenue grew 16% year-over-year to €514.5M in 2024, mainly from strategic acquisitions, but profitability declined due to a weak automotive market and low consumer confidence.

• Adjusted EBITDA for 2024 was €20.7M, down 17% year-over-year; adjusted EBIT fell 58% to €5.1M.

• Major acquisitions included Suur-Savo Cooperative's car dealership, Suvanto Trucks Oy, and Lahden Rekkapaja Oy; Wetteri Power Oy was sold after year-end.

• Efficiency program launched to improve profitability and reduce costs, including organizational restructuring and store closures.

• The sale of Wetteri Power Oy and divestment of training businesses were classified as discontinued operations, impacting reported results.

Financial highlights

• Full-year revenue reached €514.5M, up 16%; Q4 2024 revenue was €116.8M, down 11% year-over-year.

• Adjusted EBITDA for 2024 was €20.7M (down 17%); adjusted EBIT was €5.1M (down 58%).

• Reported operating profit for 2024 was €-0.2M (down from €5.4M); net loss was €-7.1M, EPS at €-0.05.

• Cash flow from operating activities was €20.7M; total cash flow €0.7M.

• New passenger car registrations in Finland fell to 74,000, below the forecasted 80,000.

Outlook and guidance

• 2025 guidance: revenue €510–540M; adjusted EBIT/operating profit €9–11M.

• New car registrations expected to grow 10% in 2025; used car and maintenance business to remain strong.

• Market expected to return to 100,000 annual new registrations in the medium term.

• Medium-term target: €1B in revenue and €30M in operating profit.