Hemply Balance (HMPLY) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was 1,164 TSEK, down 42.7% year-over-year; Q4 revenue was 115 TSEK, down 78.6% from Q4 2023.

• EBITDA improved to -613 TSEK for 2024 from -3,831 TSEK in 2023; Q4 EBITDA was -20 TSEK versus -1,225 TSEK in Q4 2023.

• Net result for 2024 was -611 TSEK, a significant improvement from -3,957 TSEK in 2023.

• Cost-saving program and focus on B2B sales in Japan led to improved margins and financial position.

• No employees at year-end; operations supported by consultants.

Financial highlights

• Gross margin increased to 72.6% for 2024 (from 59% in 2023); Q4 gross margin was 67.2%.

• Cash flow from operations was 2,108 TSEK for 2024, compared to -2,318 TSEK in 2023.

• Equity at year-end was 1,166 TSEK, up from -19 TSEK at end of 2023.

• Liquidity improved to 483 TSEK at year-end, up from 117 TSEK in 2023.

• No dividend proposed for 2024.

Outlook and guidance

• 2025 focus will be on managing Japanese operations and pursuing a structural transaction to create shareholder value.

• New Japanese CBD regulations impacted Q4 sales, but compliance achieved and new orders received post-period.