eCom Teams Sweden (ECTM) Q4 2024 earnings summary

Executive summary

• Completed strategic transformation, focusing solely on e-commerce after divesting platform operations, resulting in improved profitability and cash flow in Q4 2024.

• Achieved positive EBITA of 4.8 msek in Q4, compared to -19.9 msek in Q4 2023, and positive operating cash flow of 8.2 msek.

• Ongoing challenges in meeting demand due to liquidity constraints and delayed loan write-down, leading to lower inventory coverage and sales.

• New CEO, Jonatan Schwamberg, appointed with planned start in late summer 2025.

Financial highlights

• Q4 2024 net revenue: 127.6 msek, down 38% year-over-year; full-year 2024: 440.3 msek, down 45%.

• Q4 gross profit: 66.4 msek (Q4 2023: 95.0 msek); full-year gross profit: 115.5 msek (2023: 374.0 msek).

• Q4 EBITA: 4.8 msek (Q4 2023: -19.9 msek); full-year EBITA: 77.9 msek (2023: -73.7 msek), including one-time gains.

• Q4 net result: -8.0 msek (Q4 2023: -35.6 msek); full-year net result: -1.4 msek (2023: -348.2 msek).

• Q4 operating cash flow: 8.2 msek (Q4 2023: 32.5 msek); full-year: -62.4 msek (2023: 45.4 msek).

Outlook and guidance

• Strong demand and growth potential, but sales limited by low inventory coverage (45% vs. normal 90-96%).

• Restoring supplier credit terms and inventory levels is top priority to capture demand and improve sales.

• Potential to double sales with current brands and customer base once normal credit terms are restored.