Kjell Group (KJELL) investor relations material

Executive summary

• Q4 net sales declined 9.9% year-over-year, with Denmark experiencing a 45.5% drop; full-year net sales fell 7.9%.

• Gross margin improved to 43.2% in Q4, supported by inventory sell-out and cost control, but full-year gross margin was impacted by one-off write-downs.

• Adjusted EBITA for Q4 rose to SEK 37.8 million (margin 5.4%), but full-year Adjusted EBITA dropped to SEK 43.0 million.

• Strong cash generation was achieved due to reduced working capital and inventory.

• Net profit was -2.0 MSEK in Q4 and -388.1 MSEK for the year, mainly due to goodwill and asset impairments in Denmark.

Financial highlights

• Q4 net sales were SEK 697.2 million; full-year net sales were SEK 2,379.1 million.

• Q4 gross profit: SEK 301.3 million; full-year gross profit: SEK 932.7 million.

• Q4 Adjusted EBITA margin: 5.4%; full-year Adjusted EBITA margin: 1.8%.

• Cash flow from operating activities increased to SEK 191 million in Q4 and SEK 167 million for the year.

• Equity ratio at year-end: 36.2%.

Outlook and guidance

• Focus remains on strengthening margins, operational efficiency, and replenishing core inventory before pursuing topline growth.

• Management expects improved gross margin from supplier renegotiations and inventory optimization.

• Financial targets include net sales growth above 5%, Adjusted EBITA margin of 6-8%, and net debt/Adjusted EBITDA below 2x.

• Plans to restore high product availability and improve channel execution, especially online.

• Denmark business (AV-Cables) to be sustainably restarted without diverting group focus.