DDM (DDM) Q4 2024 earnings summary

Executive summary

• Issued EUR 25m super senior secured bonds at 9.5% and repurchased EUR 25m of senior secured bonds at 62.90% of nominal value, improving capital structure.

• Adjusted profit for Q4 2024 was EUR 15.2m (vs. EUR -2.0m in Q4 2023); full year adjusted profit EUR 10.2m (vs. EUR -7.6m in 2023).

• Gross ERC increased to EUR 311m at year-end 2024 from EUR 280m a year earlier.

• CEO transition: Erik Fällström appointed CEO, with Jesper Bernström named CFO post-year-end.

Financial highlights

• Q4 2024 adjusted gross collections EUR 16.7m (Q4 2023: EUR 16.4m); adjusted net collections EUR 12.1m (Q4 2023: EUR 14.3m).

• Q4 2024 adjusted cash EBITDA EUR 7.4m (Q4 2023: EUR 9.5m); full year adjusted cash EBITDA EUR 27.4m (2023: EUR 31.5m).

• Q4 2024 net profit EUR 5.5m (Q4 2023: EUR -2.0m); full year net profit EUR 0.6m (2023: EUR -7.6m).

• One-off impairment of loans and receivables of EUR 9.7m in Q4 2024, offset by EUR 9.3m gain from bond repurchase and EUR 6.7m fair value gain on Addiko Bank AG shares.

• Total assets at year-end EUR 256.4m (2023: EUR 236.2m); net debt EUR 165.4m (2023: EUR 157.0m).

Outlook and guidance

• NPL trends in Central, Eastern, and Southeastern Europe remain resilient, but early signs of rising credit risk in real estate and SME sectors.

• Higher borrowing costs may increase corporate default rates; company to remain disciplined in new investments and portfolio management.