Adtraction Group (ADTR) Q4 2024 earnings summary

Executive summary

• Q4 and 2024 saw negative growth, mainly due to a weak Nordic market, which accounts for a large share of gross profit, while European markets performed better; the company remained profitable with strong cash flow and a SEK 2 per share dividend proposed.

• Acquisition of Adrecord completed in October 2024 and Adservice in 2023; Klara Lån divestment continued to impact growth rates.

• Despite sales and gross profit dropping by 8% year-over-year in Q4, the company maintained a healthy balance sheet and strong net cash position.

• The company expects to return to growth in Q2 2025, with Q1 2024 expected to be in line with Q4.

Financial highlights

• Q4 net sales: SEK 344.3 million, down 8% year-over-year; gross profit: SEK 65.8 million, down 7.8%.

• Q4 EBITDA/EBITA: SEK 18.4 million, down 28% year-over-year; margin: 5.3%.

• Full-year 2024: sales of SEK 1,203 million, gross profit of SEK 231 million, EBITDA/EBITA of SEK 50-51 million, and operating cash flow of SEK 52 million.

• Operating cash flow in Q4: SEK 30.5 million; net cash at year-end: SEK 107.1 million.

• Dividend of SEK 2 per share proposed, to be paid in two tranches.

Outlook and guidance

• Growth is expected to resume in Q2 2025, with Q1 2024 performance similar to Q4.

• The company maintains medium-term goals: 20%+ annual revenue growth, 7% EBITDA/EBITA margin, and 30%-60% dividend payout.

• No significant restructuring costs expected in 2025 after Q4 layoffs.