Hernö Gin (HERNO) Q4 2024 earnings summary

Executive summary

• Maintained leading position in Swedish gin market with 4% sales growth at Systembolaget, outperforming the category's 0.3% rise.

• Total annual revenue declined by 1% year-over-year to 50.3 MSEK, mainly due to reduced international sales, especially in Denmark.

• Pre-tax profit for the year was 8.5 MSEK, down 17% from the previous year, impacted by higher costs and lower export sales.

• Notable investments included a Nasdaq First North listing and the final phase of the Hernö Gin Hotel.

• Achieved major industry recognition, winning International Gin Producer of the Year (IWSC) and Gin Brand of the Year (The Spirit Business Awards).

Financial highlights

• Q4 net sales: 11.0 MSEK, down 5% year-over-year; full-year net sales: 50.3 MSEK, down 1%.

• Gin segment annual sales: 33.9 MSEK, down 2% year-over-year; Swedish market gin sales up 4%.

• Pre-tax profit: 8.5 MSEK (down 17%); net profit: 6.6 MSEK (down from 8.0 MSEK).

• EBITDA for the year: 8.3 MSEK, compared to 12.0 MSEK last year.

• No dividend proposed for 2024.

Outlook and guidance

• Strategic focus remains on strengthening the domestic market position to support future international expansion.

• Investments in brand exposure and visitor experiences are expected to drive long-term growth.