Elektroimportoren (ELIMP) Q4 2024 earnings summary

Executive summary

• Q4 2024 delivered 5.2% revenue growth year-over-year, with double-digit growth in December, improved gross margins, and reduced operating expenses driven by operational efficiencies, cost reductions, and category management.

• Full-year 2024 revenue increased by 1.4%, with significant margin and profitability improvements, especially in the second half.

• Operational focus included cost reductions, new store openings, and strengthening both B2B and B2C segments, with increased store footfall and online sales.

• New store openings, particularly in Oslo and Lillehammer, contributed to increased customer visits and B2C growth.

• Cables, smart home products, and core categories like electrical material and lighting led growth, while heating sales declined due to a mild winter.

Financial highlights

• Q4 revenue reached NOK 520 million, up 5.2% year-over-year; like-for-like growth in Norway was 1.8%, and online sales in Norway grew 5.4%.

• Gross margin improved to 34.8% from 32.8% year-over-year; Norway's gross margin was 36.2%, Sweden's 22.4%.

• Adjusted EBITDA for Q4 was NOK 67 million, up from NOK 46 million; net profit was NOK 23 million, up from NOK 7 million.

• Full-year adjusted EBITDA rose to NOK 170 million from NOK 137 million; net profit was NOK 40 million, up from a loss of NOK 12 million.

• Cash flow from operations in Q4 was NOK 76 million; available cash at year-end was NOK 139 million.

Outlook and guidance

• Cautious optimism for 2025, expecting improved market conditions in the latter half as new builds and residential activity pick up.

• Continued focus on expanding the store network in Norway, with a new store opening in Lillehammer in April and potential for 10 more stores.

• Growth expected from smart home and energy-efficient products, and further geographic expansion in Sweden.

• SpotOn integration and reorganization expected to deliver cost reductions and synergies in H2 2025.

• January sales in 2025 show positive trends in both Norway and Sweden.