Dustin Group (DUST) Q4 24/25 earnings summary

Executive summary

• Q4 organic sales grew 3.6%, led by LCP segment strength and Windows 11 upgrades, while SMB remained weak due to cautious customer behavior and accounting changes.

• Efficiency measures and cost-saving programs were fully implemented, resulting in annual savings of nearly SEK 200 million and a 10% reduction in FTEs year-over-year.

• Strategic focus shifted to business customers, with the consumer business closed and standardized services prioritized across all markets.

• Updated sustainability targets were approved by SBTi, aiming for significant emissions reductions by 2029/30 and net zero by 2049/50.

• Full-year net sales declined 5% to SEK 20,407 million, with organic sales growth at -3.3% year-over-year.

Financial highlights

• Q4 net sales reached SEK 5,056 million (+1.4% year-over-year), with gross profit at SEK 642 million and gross margin at 12.7% (vs. 12.9%).

• Adjusted EBITA was SEK 83 million (vs. SEK 28 million), and adjusted EBITA margin improved to 1.6% (vs. 0.6%).

• Cash flow from operating activities was SEK -73 million, an improvement from SEK -355 million last year, but still burdened by high inventory and late invoicing.

• Leverage ended at 4.3x, up from 4.0x last year.

• Q4 profit was SEK 3 million, but the full year ended with a net loss of SEK -2,631 million due to a SEK -2,500 million goodwill impairment.

Outlook and guidance

• Market stabilization is visible, especially in the Nordics, with larger customers leading recovery due to Windows 11 upgrades.

• Management expects continued improvement in working capital and inventory levels in Q1.

• Long-term margin targets (6.5% for SMB, 4.5% for LCP) are still considered achievable if market conditions improve.

• No dividend proposed for 2024/25.

• Medium-term targets include >10% EPS growth (3-year average), leverage of 2.0–3.0x Net debt/EBITDA, and >70% dividend payout ratio.