Cheffelo (CHEF) Q4 2023 earnings summary

Executive summary

• Q4 returned to growth: net sales rose 5.8% YoY, or 8.3% at constant currency; adjusted EBIT margin improved to 6.0% from 4.9%.

• FY 2023 remained below prior-year sales, but profitability and cash flow recovered sharply after a 2022 goodwill impairment of MSEK 120.

Financial highlights

• Q4 net sales were MSEK 270.3; reported EBIT was MSEK 16.1 vs. -107.6, while adjusted EBIT rose to MSEK 16.1 from MSEK 12.4.

• Q4 net profit was MSEK 16.3 vs. a MSEK 112.5 loss; diluted and basic EPS were SEK 1.29 vs. -8.87.

• FY net sales declined 7.6% to MSEK 999.7, or 6.2% at constant currency; adjusted EBIT was MSEK 30.7 vs. -24.5.

• FY net profit was MSEK 19.3 vs. a MSEK 154.6 loss; EPS was SEK 1.52 vs. -12.19.

• FY operating profit improved by MSEK 180.1; prior-year reported results included a MSEK 120 goodwill impairment reserve.

Outlook and guidance

• Denmark’s strong double-digit growth is expected to continue through much of 2024; Sweden and Norway face more stressed markets and subdued consumer sentiment.

• No prices have been raised since end-2022; near-term growth in Sweden and Norway is expected to rely on higher delivery volumes. Q1 2024 Easter timing is expected to affect quarterly volumes by 2–3%.

• Expected unit economics: contribution margin slightly above 30%, sales and marketing near 13% of net sales, stable capex, with further gains from scale and planning improvements.

• Long-term targets: EBIT margin of 4–6% and net sales CAGR of 6–8% after the 2023 stabilization objective.