Apotea (APOTEA) Q4 2024 earnings summary

Executive summary

• Achieved strong revenue and profitability growth in Q4 and full year 2024, driven by prescription (Rx) sales, automation, and operational efficiency.

• Completed a successful IPO in December 2024, welcoming tens of thousands of new shareholders.

• Expanded Rx capacity, set a record of 20,000 Rx orders in one day, and executed a successful Black Week campaign with up to 90,000 orders in a single day.

• Largest assortment in the market with 53,000 items, including over 270 private label products, and launched an AI department to drive innovation.

• No dividend proposed for 2024 as focus remains on reinvestment and growth.

Financial highlights

• Q4 net revenue increased by 15.8% to SEK 1,732.9 million; full-year net revenue up 20.0% to SEK 6,541.1 million.

• Q4 adjusted EBIT margin was 3.9% (excluding SEK -15m IPO costs); full-year adjusted EBIT margin improved to 4.4% (excluding SEK -24m IPO costs).

• Gross margin improved to 27.3% for 2024 (from 26.6% in 2023), supported by procurement and supplier marketing compensation.

• Return on capital employed rose to 34.5% (from 16.7%).

• Inventory turnover rate at 9.8x for 2024.

Outlook and guidance

• Plans to further expand Rx capacity with a new hub in southern Stockholm, targeting increased pharmacist recruitment and operational capacity in 2025.

• Production at the new Varberg fulfilment centre to start in summer 2025, with automation expected to boost capacity and reduce costs.

• Focus on expanding private label offering and leveraging AI for operational improvements.

• Ambition to achieve profitability in Norway in 2025 while maintaining growth.

• Target to double revenue within 4–5 years, with a long-term EBIT margin goal of 7–8%.