Adtraction Group (ADTR) Q4 2023 earnings summary

Executive summary

• FY 2023 sales growth was 45% and gross profit growth 50%; Q4 sales grew 41% and gross profit 43% YoY. Q4 EBITA more than doubled to SEK 25.6M.

• Growth included acquisitions and organic expansion: Q4 growth was 37% acquired and 4% organic by sales; gross profit organic growth was 13%.

Financial highlights

• Q4 net sales were SEK 375.2M, up 41% YoY; gross profit was SEK 71.3M, up 43% YoY.

• FY 2023 EBITA was SEK 75M, with a 5.5% margin; Q4 EBITA was SEK 25.6M, up 103% YoY, with a 6.8% margin.

• Adjusted net result per share reached SEK 1.28 in Q4, up 22% YoY.

Outlook and guidance

• Financial goals are net sales growth above 20% and an EBITA margin above 7%.

• Q1 trading update: January gross profit showed small growth and February a small decline; Adservice had negative growth.

• Q1 cost base was somewhat higher; EBITA margin was below Q3 and Q4, while EBITA was somewhat above pro forma Q1 2023.

• Strategic priorities include European organic growth and potential M&A, plus returning teams with negative growth to growth.