Candles Scandinavia (CANDLE) Q4 23/24 earnings summary

Executive summary

• Completed full restructuring to focus solely on core business: production of eco-friendly scented candles, room fragrances, and sprays for private label customers, exiting non-core segments and incurring one-time costs of -15.8 MSEK.

• Entered new markets with significant orders from customers in Holland and France, and expanded global presence by hiring a US Country Manager.

• Ended the year with a record order backlog, positioning for renewed growth and profitability.

Financial highlights

• Net sales for May 2023–April 2024 were 179.2 MSEK, down 15% year-over-year; excluding discontinued operations, the decline was 8%.

• EBITDA for the year was -4.3 MSEK (prior year: 4.0 MSEK); EBIT was -11.3 MSEK (2.1 MSEK), but adjusted EBIT excluding one-offs was +4.5 MSEK, an improvement of 2.4 MSEK.

• Net income attributable to shareholders was -11.6 MSEK (0.9 MSEK prior year); EPS was -1.34 SEK (0.11 SEK).

• Q4 net sales rose 30% to 36.4 MSEK; adjusted EBIT for Q4 was -6.8 MSEK, impacted by restructuring costs.

• Cash position at year-end was 18.6 MSEK, with undrawn credit facilities of 45 MSEK.

Outlook and guidance

• Management expects to return to profitability for the full year 2024/25, supported by a record order book and new automated production lines.

• Targeting 30% annual sales growth over the next three years, driven by expanded product categories and international sales efforts.

• Short-term costs expected to rise in Q1 due to parallel operation of new and old production lines, but efficiency gains anticipated later in the year.