DistIT (DIST) Q4 2023 earnings summary

Executive summary

• Q4 revenue fell 23.3% YoY to SEK 553.1m; reported gross margin was 14.8% and adjusted EBITA was SEK -3.6m, versus SEK 8.4m a year earlier.

• FY revenue declined 16.0% to SEK 2,155.0m; net loss was SEK 418.4m, including SEK 285.2m of goodwill impairment, while adjusted EBITA was SEK 0.6m.

Financial highlights

• Q4 operating cash flow was SEK 17.6m (SEK 41.0m); FY operating cash flow was SEK 55.8m (SEK 59.5m), supported by SEK 167.6m from lower inventory and factoring.

• Q4 diluted EPS was SEK -7.58; excluding the SEK 123.5m goodwill impairment, diluted EPS was SEK -3.36. FY diluted EPS was SEK -16.80; excluding goodwill impairment, SEK -9.81.

• Own-brand sales were SEK 139.8m in Q4 (25.3% of revenue) and SEK 581.1m for FY (27.0%).

• Cash was SEK 30.2m and unused overdraft facilities SEK 15.4m at year-end; interest-bearing net debt, including leases, was SEK 336.9m versus SEK 362.6m.

Outlook and guidance

• A new strategy is being developed to focus on fewer businesses, further develop retained operations and improve profitability.

• Easee was preparing an EU-certified charger for residential and parking applications, expected in spring; the launch date was not set.

• Aurdel completed a cost-saving program expected to deliver an annual earnings impact of SEK 30m.